Haru Invest Executives Arrested And Detained By South Korean Prosecutors

South Korean prosecutors recently announced the arrest and detention of three Haru Invest crypto yield platform executives, including both co-CEOs. The prosecutors in Seoul accused them of misappropriating approximately 1.1 trillion Korean Won (approximately $825 million) in cryptocurrencies through about 16,000 users, according to the Seoul Southern District Prosecutor Office.

What Happened

Haru allegedly directed most client deposits through a single individual, falsely promoting that the funds were managed using risk-free distributed investment techniques. The platform reportedly enticed users with an Earn Plus product offering up to a 12% yield.

Investigations into Haru and crypto lender Delio began after both companies suddenly halted withdrawals on June 14th, 2023. Delio attributed the suspension to the abrupt stop of deposits and withdrawals at Haru Invest earlier that day, with which Delio had previously collaborated. Simultaneously, Haru filed a criminal complaint against the consignment operator on the same day, accusing it of deceiving the company with false reports, resulting in a loss of over $260 million during the infamous FTX collapse.

Damage Control

Last month, South Korean prosecutors issued an arrest warrant for an individual named Bang, who is a majority shareholder in B&S Holdings. Admittedly, Bang is not the full name of the individual in question as this information remains undisclosed due to privacy rules in South Korea.

Nevertheless, the prosecutor stated in a press release that they will thoroughly identify the true nature of the alleged crime through any and all means via a comprehensive investigation, while also doing the best to recover damages and return criminal proceeds.