Singaporean Police’s $127M Demand Could Shut Down Hodlnaut Cloud

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  • Singapore Police has demanded $127 Million from Hodlnaut which could potentially collapse the firm.
  • The transfer order demands that Hodlnaut surrender the amount from a “contractually onboarded” customer’s account.
  • The company has applied for a judicial review.

Hodlnaut, a Singapore-based cryptocurrency lending, and borrowing platform, has disclosed that the Singaporean Police Force issued a transfer order on July 14 demanding $127 Million of stablecoins to be surrendered from Samtrade Custodian’s account. Samtrade Custodian was a Hodlnaut customer who was “contractually onboarded with Hodlnaut Hong Kong.”

The company said it will have “no assets left” to follow through with the recovery strategy under judicial management if they comply, and will be forced to shut down through liquidation.

Collapsing on this magnitude will leave users unpaid. Hence, Hodlnaut applied for a judicial review on July 27 to win against the order. However, the police proceedings were already in action since December 2021.

In December, the Singapore Police directly froze Custodian’s assets as part of a bigger case but allowed Hodlnaut to operate its account normally while disenabling withdrawals. Meanwhile, the Singaporean Police notified Hodlnaut that the company wasn’t authorized to “tip off Samtrade Custodian” or disclose any information to the public.

While being severely involved with the proceedings, the company clarified that its “not the subject of any investigations by the Singapore Police Force.” Upon receiving the transfer order, Hodlnaut transferred $10 million to a police-held wallet address.

On July 27th, they were intimated to develop a repayment plan to pay for other assets. But, lawyers at Hodlnaut requested the return of the $10 million transfer that was rejected by the Singapore Police, which led to the police force to file a judicial review.

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