Hodlnaut Ex-CEO Charged With Fraud Over UST Collapse, Faces 20 Years

Zhu Juntao, 36, former CEO of Hodlnaut, was charged on May 26, 2026 with six counts of fraud by false representation. Singapore’s Commercial Affairs Department investigated allegations that Zhu directed employees to make misleading statements about the platform’s exposure to the 2022 TerraUSD crash. Hodlnaut, which served over 30,000 users worldwide, collapsed in August 2022 after suffering $190 million in UST-linked losses.

What Zhu Is Accused Of

Between May and July 2022, Zhu allegedly instructed Hodlnaut employees to tell users the platform had no direct exposure to UST and suffered no losses from its crash. These false statements appeared in Telegram messages and direct emails to users. Zhu also published three similar posts on his personal X account in June 2022, claiming Hodlnaut was unaffected by the Terra collapse.

The Charges and Penalties

Zhu faces three charges under Section 424A(1)(a) of Singapore’s Penal Code and three additional charges under Section 424A(1)(a) read with Section 109. If convicted, he faces up to 20 years in prison, a fine, or both for each charge. The investigation by Singapore’s Commercial Affairs Department took nearly four years to complete.

Hodlnaut’s Collapse and Broader Contagion

Hodlnaut allowed users to deposit digital tokens and earn interest. When TerraUSD crashed in May 2022, the platform’s hidden exposure triggered a death spiral. Hodlnaut suspended withdrawals and entered liquidation, leaving users with frozen assets. The Terra implosion erased $45 billion in market value and triggered bankruptcies at Celsius Network and Voyager Digital, exposing systemic risks in overleveraged crypto lending.

Crypto Fraud and Investor Risk

Singapore police reminded the public that cryptocurrencies are volatile and speculative with no underlying value. Dealing in crypto carries high risk, and service providers can collapse due to fraud. This case follows Terra co-founder Do Kwon’s 15-year prison sentence in December 2025 for his role in the UST collapse, signaling stricter enforcement against crypto fraud globally.

Final Thoughts

Zhu’s fraud charges underscore the dangers of unregulated crypto lending and the cost of false claims to users. For crypto investors, this case reinforces that platform transparency is critical and that regulatory enforcement is tightening worldwide.

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