According to South Korean media reports, the South Korean cryptocurrency platform Haru Invest, suspected of 'rug pulling', was declared bankrupt today (20th) by the Seoul Rehabilitation Court (bankruptcy court).
Haru Invest had previously promised users that by storing assets such as Bitcoin, Ethereum, and USDT, they could gain high returns, but the platform suddenly halted withdrawal services in June 2022, resulting in significant losses for 16,000 investors.
The court ruled that although Haru Invest's operator Haru Management Limited is registered in the British Virgin Islands, the company has an office in South Korea, thus it has jurisdiction, and considering that Haru Invest is insolvent and unable to pay damages, the company was ultimately declared bankrupt.
The court plans to hold the first creditors' meeting on February 11, 2025, to liquidate the remaining assets of the company through the bankruptcy administrator and initiate the distribution process.
Currently, the operators of Haru Invest are still undergoing a criminal trial related to cryptocurrency fraud at the Southern District Court of Seoul, where the company is accused of deceiving customers and misappropriating approximately 1.4 trillion Korean won (about $1.05 billion) of user assets.
In the related events, Haru Invest CEO Lee Hyung Soo was stabbed during a court hearing in August this year, highlighting the intense scrutiny and public outrage surrounding the company.
"Suspected of rug pulling and misappropriating $1.05 billion in customer assets! Haru Invest declared bankrupt by Seoul court" this article was first published on (Block Tempo).
