Former Hodlnaut CEO Charged in Singapore Over Terra Collapse Claims

Singapore authorities have charged former Hodlnaut CEO Zhu Juntao with fraud over claims linked to the collapse of TerraUSD (UST) in 2022. Prosecutors allege Zhu misled users about the crypto lending platform’s financial exposure during one of the industry’s biggest crises.

According to authorities, Zhu faces six charges for allegedly directing employees to publish misleading statements through Telegram messages and official company emails. The statements reportedly claimed that Hodlnaut had no direct exposure to TerraUSD and suffered no losses after the stablecoin’s dramatic collapse.

Allegations Linked to TerraUSD Collapse

Investigators also claim Zhu shared similar statements on his personal X account. Authorities argue these claims gave users a false impression of Hodlnaut’s financial condition during the crisis.

Hodlnaut Collapse and Legal Risks

Hodlnaut stopped operations in August 2022 after facing severe liquidity problems. Court records previously showed the TerraUSD collapse caused nearly $189.7 million in losses for the company.

If convicted, Zhu could face up to 20 years in prison, financial penalties, or both under Singapore law.