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Singapore charges Hodlnaut CEO with fraud over Terra exposure
Ex-CEO Zhu Juntao faces six fraud counts for telling customers Hodlnaut had no Terra exposure, with $317M in Anchor Protocol. Pre-trial June 2026.
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Singapore authorities have charged former Hodlnaut CEO Zhu Juntao with fraud, nearly four years after the crypto lender froze withdrawals during the TerraUSD (UST) collapse. The case centers on claims that Zhu ordered employees to tell customers the firm had no direct exposure to the failed algorithmic stablecoin. Court records later revealed that roughly $317 million of user funds sat in Terra’s Anchor Protocol.
Zhu Juntao Faces Six Fraud Charges Over Terra Exposure Denials
The Singapore Police Force announced on Tuesday that Zhu faces six charges of fraud by false representation. Prosecutors allege that in 2022, Zhu instructed staff to publish false statements on Hodlnaut’s Telegram channels and in customer emails, asserting the company had not suffered losses from the TerraUSD collapse. Authorities also point to three posts on his personal X account (then Twitter) in June 2022 that made similar claims.
Zhu disputed all six charges in court. A pre-trial conference has been set for June 2026, according to local media reports. If convicted on each charge, Zhu could face up to 20 years in prison, fines, or both under Singapore law.
What the allegations mean for the lender’s customers
The false statements came just weeks after TerraUSD de-pegged in May 2022, wiping out roughly $40 billion from the crypto market. Hodlnaut suspended all withdrawals in August 2022, leaving more than 30,000 users globally unable to access their deposits. The company later entered judicial management and was ordered into liquidation by the Singapore High Court.
Court-appointed judicial managers later estimated Hodlnaut lost about $189.7 million from its Terra exposure – a figure that directly contradicted the claims Zhu is accused of making.
Hodlnaut’s $317M Anchor Protocol Bet and the $189.7M Hole
Reports filed during Hodlnaut’s restructuring proceedings revealed the depth of its bet on Terra. The company channeled roughly $317 million of user funds into Terra’s Anchor Protocol, which was offering around 19.5% annualized yield on UST deposits before the collapse.
That yield proved unsustainable. When UST crashed to near zero, Hodlnaut’s exposure turned into a roughly $189.7 million hole – money that belonged to its users.