- Ex-Hodlnaut CEO Zhu Juntao faces charges over misleading TerraUSD exposure claims.
- Zhu falsely claimed Hodlnaut had no direct UST exposure after the 2022 collapse.
- Zhu could face up to 20 years in prison amid scrutiny of failed crypto lenders.
Former Hodlnaut Chief Executive Officer (CEO) Zhu Juntao (Zhu) is facing six charges of fraud by false representation for allegedly misleading users about Hodlnaut’s exposure to the TerraUSD (UST) price crash via Telegram, email, and Twitter between May and July 2022. Hodlnaut, with over 30,000 users, froze withdrawals and collapsed in August 2022 amid the broader market crash triggered by the UST depegging and Luna failure.
Former Hodlnaut CEO Charged for False TerraUSD Claims
On 26 May 2026, Zhu Juntao, the 36-year-old former Chief Executive Officer of the now-defunct cryptocurrency lending platform Hodlnaut, was charged in court with six counts of fraud by false representation. The charges comprise three counts under Section 424A(1)(a) read with Section 424A(3) of the Penal Code 1871, and three additional counts under the same provision read together with Section 109 of the Penal Code 1871.
Hodlnaut was a Singapore-based crypto lending platform that served more than 30,000 users globally. It allowed customers to deposit digital assets in exchange for interest-bearing returns. However, the firm came under severe pressure during the 2022 crypto market downturn. It suspended customer withdrawals in June 2022 and ultimately collapsed in August 2022, following the broader market contagion triggered by the Terra/Luna crash.
Why Zhu Juntao is Facing Fraud Charges
According to the Singapore Police Force, Zhu allegedly directed Hodlnaut’s employees to claim that the platform had no direct exposure to UST and had not suffered any losses from the UST crash. These statements were issued through the company’s official Telegram group chat and official emails sent to users between May and July 2022.
In addition, Zhu himself allegedly posted three misleading statements containing the same false claims on his personal Twitter (now X) account in June 2022. Although his X posts have been deleted, according to sources, he allegedly posted “Hodlnaut as a firm did not take any losses on UST, users who held/bought UST on our platform did”, “Missed this but had no price exposure to $UST or incurred any losses from the debacle.”
What’s Next?
The case highlights ongoing legal accountability for statements made by crypto executives during the 2022 market turmoil. Zhu was given a pre-trial conference date in June 2026, which will determine the next stages of the case, including potential trial dates and other procedural matters.
Meanwhile, if the case proceeds to trial and Zhu Juntao is convicted on any of the six fraud charges, he could face a maximum penalty of up to 20 years’ imprisonment, a fine, or both for each charge.
Furthermore, it signals stronger enforcement against misleading practices in the crypto industry, especially around risk disclosures during major market events. It may encourage more platforms to improve transparency and could influence ongoing creditor recovery efforts for Hodlnaut users.
Related: Florida Crypto CEO Charged in $328M Fraud Case
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