Singapore-based crypto lending platform Hodlnaut’s former CEO, Zhu Juntao, has been charged with six counts of fraud, nearly four years after the company collapsed following the downfall of the TerraUSD (UST) ecosystem. The charges come in the wake of a prolonged investigation into allegations that Zhu misled employees and customers during the platform’s greatest crisis.
Fraud Charges and Legal Proceedings
Singapore police reported that Zhu Juntao faces six separate fraud charges. Prosecutors allege Zhu instructed Hodlnaut staff in 2022 to share misleading statements on the company’s Telegram channels and via customer emails. These statements claimed that the platform had not been directly affected by the TerraUSD crash and suffered no financial losses.
At the time, Zhu is also said to have made similar claims on his personal social media accounts. If convicted, Zhu could face up to 20 years in prison or a substantial fine for each count, as stipulated under Singaporean law.
Prosecutors allege Zhu directed employees in 2022 to publish false statements on Hodlnaut’s Telegram channels and in customer emails claiming the company had no direct exposure to TerraUSD’s collapse.
Brought before a Singapore court, Zhu denied all allegations. The preliminary trial has been scheduled for June 2026, indicating a lengthy legal process ahead.
Hodlnaut and the TerraUSD Collapse
Hodlnaut was one of the crypto lenders hit hardest by the May 2022 collapse of Terraform Labs’ algorithmic stablecoin TerraUSD (UST). This disaster wiped out around $40 billion from the crypto markets, triggering a chain reaction that destabilized major players like Three Arrows Capital, Celsius, and Voyager.
Public records and court documents revealed that, prior to bankruptcy, Hodlnaut directed approximately $317 million of user funds into Terra’s Anchor Protocol. Anchor had promised up to 19.5% annual returns on UST deposits, but when UST imploded, its value plummeted to near zero.
Glossary: Anchor Protocol was a decentralized finance (DeFi) platform within the Terra ecosystem offering high-yield interest rates to users depositing UST. Its 19.5% yield attracted significant attention before the collapse.
Court-appointed administrators reported that Hodlnaut suffered total losses of $189.7 million from the Terra fallout. They also identified poor internal record-keeping at the company and noted that senior management failed to cooperate fully with investigations.
| Company | Loss from TerraUSD Crisis (Million USD) | Outcome |
|---|---|---|
| Hodlnaut | 189.7 | Bankruptcy, liquidation |
| Three Arrows Capital | Not disclosed | Bankruptcy |
| Celsius | Not disclosed | Restructuring |
| Voyager | Not disclosed | Bankruptcy |
Platform Shutdown and User Impact
Founded in 2019, Hodlnaut quickly gained more than 30,000 users globally through its interest-bearing crypto accounts. However, by August 2022, mounting financial stress forced the company to freeze withdrawals, locking user funds.
Shortly after, the Singapore High Court placed the company under judicial management for restructuring. Those efforts ultimately failed, leading to the platform’s official liquidation.
