Hodlnaut Might Fail If Singaporean Police Requirements Are Met


Today, Hodlnaut disclosed that the Singapore Police Force issued a transfer order that might deplete its funds.

Hodlnaut said in its most recent statement that on July 14, the Singapore Police Force (SPF) issued a transfer order against it.

This ruling requires Hodlnaut to return $127 million worth of stablecoins from the account of Samtrade Custodian, a client “contractually onboarded” with Hodlnaut Hong Kong.

Hodlnaut claims that if it complies with the decision, the company would have “no assets left” to carry out its recovery plan under court administration. Compliance may potentially cause the firm to liquidate, leaving it unable to pay its customers.

Therefore, the company has sought court review in an effort to overturn the ruling. This application was submitted on July 27.

Proceedings Started In December

Since December 2021, police proceedings on this subject have been underway. As part of a bigger investigation, the Singaporean authorities confiscated assets immediately from Samtrade Custody at that time.

Hodlnaut had $117 million worth of Samtrade’s assets at the time. The police directed Hodlnaut to maintain the usual operation of Samitrade’s account while restricting withdrawals. The company was also instructed to “in no manner informs Samtrade Custodian.” From January 29 through July 14, Samtrade continued to deposit funds into its Hodlnaut account.

On July 14, Singapore Police officers delivered a transfer order to Hodlnaut’s headquarters. The order instructed Hodlnaut to transfer $127 million worth of USDC and USDT owned by Samtrade to a wallet address maintained by the police. It sent barely $10 million of the total.

Hodlnaut was instructed on July 22 to unwind all Hodlnaut Group investments by July 27 and to prepare a repayment plan for any assets that could not be unwound and handed to the police.

The police denied the request made by Hodlnaut’s attorneys for the return of the ten million dollars already deposited. Additionally, attorneys asked for a temporary hold on the transfer order.

Also Read: The Tornado Cash incident highlights legal difficulties impacting the crypto sector

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