FEB 6, 2024
Haru Invest executives arrested for $750M crypto embezzlement
The joint virtual asset crime investigation unit of the Seoul Southern District Prosecutors’ Office announced the arrest of three executives from South Korean cryptocurrency yield platform Haru Invest, according to a report by local news agency Yonhap. They are accused of embezzling cryptocurrencies valued at over 1 trillion Korean won ($750 million).
This development comes after approximately 100 investors filed a fraud lawsuit in June against the executives of Haru and Delio, another Korean crypto lending firm.
The three leading executives of Haru, one aged 44 and the other two aged 40, are facing fraud charges for failing to return cryptocurrencies deposited by around 16,000 customers.
Investigations uncovered that Haru Invest was offering misleading promotions for its products. Despite assurances that it utilized a risk-free, diversified investment strategy to manage user assets, Haru Invest predominantly allocated the majority of these assets towards concentrated investments from March 2020 to June 2023. Haru Invest had garnered attention from crypto investors, promising an annual return of up to 12%.
Subsequently, on June 13, Haru halted the withdrawal of digital assets without prior notice. The platform is currently in the midst of bankruptcy proceedings.