Ex-Hodlnaut CEO Charged Over TerraUSD Loss Claims

Zhu Juntao, Hodlnaut's former chief executive, was charged in a Singapore court on Tuesday with six offenses for allegedly distributing misleading statements that denied the company’s losses and exposure to the May 2022 collapse of TerraUSD (UST). The charges relate to posts on Hodlnaut’s official channels and Zhu’s personal account on X.

A police statement said authorities allege Zhu instructed employees in 2022 to post on Telegram and send official emails asserting that Hodlnaut “did not have direct exposure to UST and / or did not suffer losses arising from the crash of UST.” The statement also cited similar posts on Zhu’s X account.

Hodlnaut, which had said it served more than 30,000 users, became defunct in August 2022 after a liquidity crisis. A court affidavit filed earlier in the case indicated the May 2022 UST collapse led to about $189.7 million in losses for the platform.

If convicted on the charges, Zhu faces a maximum penalty of 20 years in prison, a fine, or both. Singapore authorities have expanded enforcement of crypto-related offenses and last year conducted arrests and extraditions tied to alleged wash trading in digital-asset markets.

No public statement from Zhu or his legal team has been posted, police noted. The charges focus on the content and distribution of company communications during the period when Hodlnaut reported a liquidity shortfall and mounting losses linked to the UST collapse.