FacebookTwitterLinkedInTelegramCopy LinkEmail
Crime and Investigations

Hodlnaut Involved in Accounting Fraud?

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 an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

Learn more about crypto and blockchain technology.