Singapore Police Investigate Cryptocurrency Lender For Allegedly Encouraging Illegal Activities

The United States Commodity Futures Trading Commission (CFTC) has reportedly opened an investigation into crypto firm Hodlnaut and its CEO, Anthony Di Iorio, after the company allegedly defrauded investors.

According to a report from Business Insider, the agency has been investigating the company since last year after receiving complaints from investors who had lost money investing in its ICO. The CFTC is reportedly investigating whether or not Di Iorio and Hodlnaut violated anti-fraud laws and if they did, whether any action should be taken against them.

The investigation comes as a result of an $800 million fund that was raised via an initial coin offering (ICO) in 2017. Investors were promised high returns on investments if they held tokens for a minimum period of time. However, after several months, many of these investors started to complain about their losses when Hodlnaut stopped paying out returns on their investments and stopped responding to requests for updates on when they would get paid back.