According to the article 'Crypto lender Hodlnaut reportedly faces police investigation in Singapore' on Cointelegraph.
The Singapore police have launched an investigation into Hodlnaut over alleged offenses of cheating and fraud. The investigation is based on multiple complaints against the platform between August and November 2022.
The crypto lender suspended withdrawals on the platform on Aug. 8 citing a liquidity crisis, but on-chain data suggested they held at least $150 million in the now-defunct algorithmic Terra stablecoin now called TerraUSD Classic (USTC).
Hodlnaut, a crypto lender, managed to keep its USTC exposure under wraps for almost three months after the collapse of the Terra ecosystem, but now faces a police probe for keeping users in the dark.