Hodlnaut Involved in Accounting Fraud?
According to a repot from a Singapore court, bankrupt crypto lender Hodlnaut has hidden some documents from court-appointed interim judicial managers (JMMs).
Acting on the information, the JMMs from EY Corporate Advisors have filed a report asking the Singapore High Court to compel Zhu Juntao and Simon Lee (the founders of Hodlnaut) to share the hidden documents.
The report states:
The JMMs have encountered considerable difficulties in compiling an accurate and complete picture of the company’s financial position. Among other reasons, the company’s accounting and financial records had not been properly maintained prior to the appointment of interim judicial managers.
The interim court managers accused the company’s founders and certain employees, who remained unnamed, of failing to cooperate. They have prevented the court managers from gaining access and control of several vital documents and records.
They said more than 1,000 files were deleted from their Google workspace after the appointment of the JMMs. The documents would have helped court executives better understand the financial status of crypto lender Hodlnaut.
The court-appointed executives have yet to receive accurate information about the company’s DeFi positions. These positions make up the majority of Hodlnaut’s crypto assets and are located on several platforms such as Aave, Curve, Compound and Convex.
READ MORE: EU Wants to Introduce Blockchain in Taxation
Hodlnaut’s assets on centralized exchanges amount to just $25.7 million of the approximately $104 million the company has at its disposal.
About a week ago, Hodlnaut co-founder Simon Lee filed a written statement against JMMs accusing them of lacking integrity. According to Lee, court leaders fired the company’s former lawyer despite assurances that he would be hired. According to Lee, there may be a case of conflict of interest in the new hire.
The report also hints at the possibility of criminal charges being brought against Lee due to the fact that the directors told some of their employees to withdraw their funds before announcing they were stopping withdrawals.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
