Former Hodlnaut CEO Faces Fraud Charges Over TerraUSD Exposure

Former CEO of Singapore-based crypto lending platform Hodlnaut, Zhu Juntao, has been charged with six counts of fraud for allegedly misleading users about the company's exposure to TerraUSD. According to ChainCatcher, the charges stem from Hodlnaut's undisclosed investment of $317 million in Terra's Anchor Protocol, which resulted in a loss of $189.7 million following the collapse of UST. When the platform shut down in August 2022, it owed users approximately $281 million, with assets totaling only $88 million, leaving a shortfall of about $193 million. Prosecutors allege that during and after the UST collapse, Zhu instructed employees to make false statements in the company's official Telegram group and emails, claiming that Hodlnaut had not invested in LUNA or UST and had not suffered losses. Zhu has pleaded not guilty, and a pre-trial conference is scheduled for June 2026. If convicted, each charge carries a maximum sentence of 20 years in prison.