In South Korea, three high-ranking managers of the #cryptocurrency platform Haru Invest, including both of its CEOs, were detained on Monday. This arrest was made on allegations that these managers embezzled cryptocurrencies with a total value of approximately 1.1 trillion KRW (826 million USD), causing harm to roughly 16,000 platform users. This information was disclosed by a prosecutor from the southern district of Seoul to The Block newspaper.
Allegations of Unscrupulous Practices
Investigations have revealed that Haru Invest engaged in risky handling of its clients' deposits, investing them through a single entity and deceptively claiming to employ "risk-free distributed investment techniques." They promised users of their Earn Plus products returns of up to 12%.
Suspension of Withdrawals and Investigations
The situation escalated when Haru, along with the company Delio, which deals with cryptocurrency lending and had collaborated with Haru, abruptly suspended withdrawals on June 14, 2023. Delio cited this move as a result of the sudden interruption in deposits and withdrawals with Haru Invest.
Criminal Complaints and Losses
On the day of the withdrawal suspension, Haru filed a criminal complaint against B&S Holdings for misleading information that led to losses exceeding 260 million dollars due to the collapse of the #FTX exchange.
Further Investigations and Privacy Protection
Last month, South Korean prosecutors issued an arrest warrant for an individual identified as Bang, the majority shareholder of B&S Holdings, but his full name was not disclosed due to privacy rules. Investigators have committed to thoroughly examine the nature of the allegations and strive for maximum recovery of damages and the return of funds acquired through criminal activities.
Notice:
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