- Haru executives stole the customers' funds between March 2020 and June 2023
- They marketed Haru as a platform using diversified, risk-free investment techniques
South Korean authorities arrested three executives at Haru Invest, a platform which promised double-digit yields for crypto deposits, for making away with 1.1 trillion won ($828 million) worth of crypto from almost 20,000 customers, CoinDesk reported. Reportedly, company CEO Lee Hyung-soo is among the three arrested.
South Korean prosecutors accused the Haru executives of stealing customer funds between March 2020 and June 2023. At the time, they marketed Haru as a platform using diversified, risk-free investment techniques.
A troubled platform
Haru Invest had had issues for some time. It paused withdrawals and deposits in June 2023, blaming problems with service partners. Haru fired around 100 employees shortly thereafter. At the time, the CEO said on a video call that regular management of the company had become “difficult due to the recent situation.” He informed employees of the changes through that call on behalf of Block Crafters, Haru’s parent company.
Legal issues
That same month, Lee reported Haru Invest was suing renewable energy firm B&S Holdings for committing embezzlement, fraud, and other crimes. Haru wrote on its blog that the decision had been made to minimize company operations and the operations of affiliated firms “to prevent further damages that are likely to be incurred."
They disappeared after a rug pull
After Haru paused withdrawals on June 13, local media reported that all the employees had left the company’s office in Seoul. According to its CEO, the staff was working from home for safety reasons. Eventually, Haru closed its office and all company execs disappeared, CoinDesk Korea reported at the time.
According to South Korean medium Yonhap, the platform ran a scam known as a “rug pull,” which is where crypto project creators wait for customer funds to accumulate, then disappear with them. Haru co-founder and former CTO Eunkwang Joo denied this claim on X.
Contributors
