Hodlnaut has revealed that the Singapore Police Force demanded money via a transfer order in July. That transfer order concerns $127 million in an account belonging to one customer, Samtrade Custody.
Hodlnaut stated in its most recent statement that the Singapore Police Force (SPF) had ordered its relocation on July 14. That order required Hodlnaut to transfer $127 million in stable money from an account of Samtrade Custodian, a customer “contracted to Hodlnaut Hong Kong.”
Hodlnaut said it would have “no assets left” to carry out its restoration plan under judicial administration if it complied with the order. Compliance could also force the company to shut down through liquidation, leaving it unable to pay users.
As a result, the company filed a request for judicial review in an attempt to rescind the order. It filed that application on July 27.
Police proceedings on this matter have been ongoing since December 2021. At that time, Singapore police seized assets directly from Samtrade Custody as part of a larger case.
At that time, Hodlnaut had $117 million of Samtrade’s assets in custody. Police instructed Hodlnaut to keep Samitrade’s account operating normally while disallowing withdrawals. The firm was also told “not to tip off Samtrade Custodian in any way.”
On July 14, Singapore Police arrived at their offices with a transfer order. The order told Hodlnaut to transfer $127 million of USDC and USDT held by Samtrade to a police-held wallet address. It only transferred $10 million of that amount.
On July 22, Hodlnaut was asked to unwind all positions in Hodlnaut Group by July 27 and create a repayment plan for any assets that could not be unwound and paid to the police.
On July 27, police asked this firm to confirm that it would deny withdrawal requests from depositors and take steps to preserve its remaining assets. This seems to be one factor in the firm’s decision to halt withdrawals on August 10.
This led to the company’s July 27 filing, which will contest the police force’s demands through judicial review.
Hodlnaut acknowledged that it was involved in proceedings with the Singapore Police Force last week on August 19. It said that it was “unable to disclose any information” at that time.
Despite the apparent severity of its proceedings with police, the company clarified that it is “not the subject of any investigations by the Singapore Police Force.”
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