Hodlnaut ex-CEO Zhu Juntao faces fraud charges

Zhu Juntao, ex-CEO of Hodlnaut, faces six fraud charges in Singapore for allegedly misleading users about the platform’s TerraUSD exposure, leading to major losses and collapse.

Former Hodlnaut CEO Zhu Juntao has been charged in Singapore with six counts of fraud by false representation. Authorities allege that Zhu and other employees made misleading statements about the platform’s exposure to TerraUSD (UST) during the turbulent collapse of the Terra/LUNA ecosystem in May 2022. Investigators claim Zhu directed staff to communicate via official Telegram channels, emails, and social media that Hodlnaut had no direct exposure to UST and did not incur losses from its crash. However, evidence suggests significant user funds were converted into UST and deposited into the Anchor protocol, resulting in substantial losses. This alleged deception led to a $193 million financial shortfall and contributed to Hodlnaut’s collapse in August 2022. The charges, brought after an investigation by Singapore’s Commercial Affairs Department, represent the first major criminal indictment against a senior Hodlnaut executive and highlight ongoing concerns about transparency in the cryptocurrency sector.