Man Stabs Crypto CEO Multiple Times During Trial In South Korea

On 28th August, 2024, in South Korea, the CEO of crypto company Haru Invest was attacked during his trial for alleged fraud involving over $800 million. Hugo Hyungsoo Lee was repeatedly stabbed in the neck by a man in his 50s, as reported by local media, and was quickly rushed to the hospital. His injuries were not considered life threatening. The assailant was said to be a former client of Haru Invest.

A Controversial Issue

The trial has garnered significant attention and controversy not just due to the substantial sum of money at stake but also because it coincides with updates to South Korean consumer protection laws. Lee was one of three executives apprehended in February for charges related to embezzlement involving 1 trillion Won worth of cryptocurrency (about $748,900,000 USD).

In response to growing concerns over crypto regulations, South Korea introduced its first law aimed at safeguarding crypto investors. The Virtual Asset User Protection Act seeks to address unfair trading practices and follows past incidents such as the Terra-Luna crash and the collapse of FTX. This law came after South Korean crypto exchanges had previously attempted to prevent widespread delistings.

An Effective Response

According to the prosecution, the executives were accused of accepting deposits by approximately 16,000 clients between March 2020 and June 2023, claiming to manage these funds with a stable, diversified investment strategy, but suspending withdrawals without notice after June 2023.

In response to these issues, the South Korean government enacted the aforementioned Virtual Asset User Protection Act in June 2023, which came into effect a year later. This legislation aims to address unfair trading activities, enhance market oversight, and empower the Financial Services Commission to regulate the sector more effectively.