The former CEO of Hodlnaut faces 20 years in prison and six counts of fraud related to the Terra crash.

CoinFeed reported on May 27 that, according to Cryptopolitan, Zhu Juntao, former CEO of Singapore-based crypto lending platform Hodlnaut, has been charged with six counts of misrepresentation fraud for allegedly misleading users about their exposure to TerraUSD. Hodlnaut undisclosed the investment of $317 million from user accounts in Terra's Anchor Protocol, resulting in a loss of $189.7 million after the UST collapse. When the platform shut down in August 2022, it owed users approximately $281 million, with assets of only $88 million, leaving a shortfall of approximately $193 million. Prosecutors allege that Zhu Juntao instructed employees to make false promises in the official Telegram group and emails during and after the UST collapse, including claims that the company had not invested in LUNA or UST and had not suffered any losses.