The Singapore government has filed six fraud charges against the former CEO of the well-known cryptocurrency exchange Hodlnaut. These charges stem from the company's collapse due to false statements made during the market volatility in 2022.
In early May 2022, the collapse of UST triggered losses across the entire crypto industry, and Hodlnaut was no exception. The company invested $317 million from user accounts into Terra's Anchor protocol without disclosing this to customers, resulting in a loss of $189.7 million when UST collapsed.
The Collapse of Hodlnaut and the CEO's Accountability
Founded in April 2019, Hodlnaut was an online platform that allowed users to deposit Bitcoin, Ethereum, and stablecoins globally in exchange for interest payments. The company's co-founders are Simon Lee and Zhu Juntao.
In this regard, 36-year-old Zhu Juntao, who studied at Singapore Management University and worked at Credit Suisse, oversaw Hodlnaut's growth into a company with over 30,000 customers, offering an annual percentage yield (APY) of up to 10% and managing approximately $750 million in investments.
After the collapse of Terra, Hodlnaut suspended customer withdrawal requests in June 2022 and eventually entered judicial management. When the platform shut down in August 2022, the company's estimated debt to users reached $281 million, while its total assets were only $88 million, resulting in a deficit of about $193 million.
Poor Public Relations Management and False Promises to Customers
Before May 25, 2022, Zhu was accused of making false promises, claiming that the company had no direct connection to LUNA or UST and that its funds were not invested in these assets.
Additionally, Zhu was accused of instructing employee Megan Lois Lau Shi May to send emails to about 30 users, stating that Hodlnaut had not suffered any losses, despite users trading UST on the platform experiencing losses.
Moreover, Zhu posted three messages on his personal X account (formerly Twitter) in June 2022, including: “Hodlnaut as a company did not suffer any losses on UST; only users holding/purchasing UST suffered losses,” and “Missed this point, but there was no price risk or losses related to $UST.”
Charges Awaiting Trial, Court Appearance, and Maximum Prison Sentence
Zhu is scheduled to make his first court appearance on May 26, 2026, where he will formally face six counts of fraud under Section 424A(1)(a) and Section 424A(3) of the Penal Code of 1871 for false statements. Additionally, there are three charges related to incitement. He has pleaded not guilty and contested all charges. A pre-trial hearing is set for June 2026.