South Korean prosecutors have taken action against the troubled cryptocurrency yield platform Haru Invest, which suspended withdrawals in June 2023. The virtual asset crime investigation unit of the Seoul Southern District Prosecutors Office has arrested three key individuals, including Haru Invest’s CEO and two other executives, on charges of stealing 1.1 trillion won (approximately $830 million) in cryptocurrency from 16,000 Haru Invest customers.
Prosecutors allege that Haru Invest executives misappropriated the majority of the coins deposited by customers by reinvesting the assets from March 2020 to June 2023. Additionally, they are accused of falsely advertising Haru as a stable and risk-free diversified investment platform.
Haru Invest abruptly suspended withdrawals on June 13, 2023, which was followed by Delio, a depository and management company with funds in Haru Invest, also halting withdrawals the next day. Haru Invest subsequently claimed that these issues were caused by the alleged fraudulent activity of consignment operator B&S Holdings, formerly known as Aventus.
Established in 2019, Haru Invest operated a cryptocurrency yield platform, promoting annual interest rates of up to 12% on cryptocurrency deposits. The suspension of withdrawals led to Delio and other affected investors filing a class-action lawsuit against Haru in June 2023.
In a recent statement on X, Haru Invest CEO Hugo Lee mentioned that there were “no particular updates to share this week” and noted ongoing efforts for asset recovery. The statement was issued following the detention of Bang Jun-ho, the major shareholder of B&S Holdings.
The arrests mark a significant development in the ongoing investigation into Haru Invest’s alleged cryptocurrency theft and fraudulent activities, with prosecutors seeking accountability for the substantial losses incurred by investors.
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