Former Hodlnaut CEO Charged in Singapore Over Terra Collapse Statements

[johnblockbuster]

Singapore authorities have charged former Hodlnaut CEO Zhu Juntao with six counts of fraud by false representation related to statements made during the 2022 Terra ecosystem collapse. Prosecutors allege Zhu and other Hodlnaut employees misled users about the company’s exposure to TerraUSD (UST) as the crisis unfolded.

According to Singapore Police, Zhu allegedly directed employees to publish misleading statements in Hodlnaut’s Telegram groups and customer emails between May and July 2022, claiming the platform had no direct exposure to UST and had not suffered losses from the collapse. Authorities also say Zhu personally posted similar statements on his X account, formerly Twitter, during the same period.

If convicted, Zhu could face up to 20 years in prison for each charge, along with possible fines. The case revives attention on one of the biggest crypto disasters in recent years, when the collapse of Terra wiped out roughly $50 billion in market value and contributed to the failure of several major crypto lenders across the industry.

[chainsniff]

terra’s collapse continues generating legal consequences years later like a financial supernova with delayed explosions

[cryptobro]

executives discovering telegram messages written during market panic

[cryptobro]

eventually become courtroom evidence is an expensive lesson