PANews reported on November 20 that South Korea's virtual asset management platform Haru Invest has been declared bankrupt today by the Seoul Rehabilitation Court due to alleged 'pump and dump' schemes that resulted in approximately 1.4 trillion won (about 10.5 billion USD) in virtual currency losses. It is said that the company previously promised high returns by storing assets such as Bitcoin, Ethereum, and USDT, but suddenly stopped withdrawals in June 2022, causing massive losses for over 16,000 investors. Currently, the operators of Haru Invest are also undergoing a criminal trial related to cryptocurrency fraud at the Southern District Court of Seoul.
The court ruled that although Haru Invest's operating company is registered in the British Virgin Islands, it has a physical place of operation within South Korea, thus has jurisdiction, and has declared bankruptcy due to loss of payment capacity. The court plans to hold the first creditors' meeting on February 11, 2025, to allow the bankruptcy administrator to investigate the company’s assets and initiate the distribution process.
