Haru Invest executives arrested over misappropriation of client assets

abdelaziz Fathi

South Korean prosecutors have taken decisive action against the executives of Haru Invest, a cryptocurrency yield platform that has been facing troubles since it suspended withdrawals in June 2023.

South Korea money

Three top individuals from Haru Invest, including the CEO and two other executives, have been arrested, as reported by local news agency Yonhap.

The Seoul Southern District Prosecutors Office’s virtual asset crime investigation unit made the arrests. Haru Invest’s executives are accused of embezzling nearly 1.1 trillion won ($830 million) in cryptocurrencies, from around 16,000 customers.

According to the prosecution’s claims, the executives of Haru Invest misappropriated the coins deposited by their customers. This was purportedly done by reinvesting the assets from March 2020 to June 2023, contrary to the firm’s claims of using “risk-free diversified investment techniques” for operating a stable business.

The arrest comes in the wake of Haru Invest’s latest announcement on February 4, which stated there were “no particular updates to share this week,” a message signed by the CEO, Hugo Lee. This announcement followed Haru Invest’s abrupt halt of withdrawals on June 13, 2023. The platform’s issues were further compounded when Delio, a depository and management company involved with Haru Invest, also ceased withdrawals the following day.

“As of now, no information is available regarding the investigations and overall situation following the detention of Bang Jun-ho, the major shareholder of B&S Holdings. We continue our various efforts for asset recovery as we have been doing,” the statement read.

Haru Invest had previously attributed its challenges to alleged fraudulent activities by consignment operator B&S Holdings, formerly known as Aventus. However, the arrests suggest deeper issues within Haru Invest’s operations.

 

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