According to PANews, South Korean virtual asset management platform Haru Invest has been declared bankrupt by the Seoul Rehabilitation Court following allegations of a 'pump and dump' scheme that resulted in a loss of approximately 1.4 trillion Korean won (around $10.5 billion) in virtual currency. The company had previously promised high returns through the storage of assets such as Bitcoin, Ethereum, and USDT. However, in June 2022, Haru Invest abruptly halted withdrawals, leading to significant financial losses for over 16,000 investors. Currently, the operators of Haru Invest are undergoing a criminal trial related to cryptocurrency fraud at the Seoul Southern District Court.
The court determined that despite Haru Invest's registration in the British Virgin Islands, it has actual operational facilities within South Korea, granting the court jurisdiction over the case. The bankruptcy ruling was made due to the company's inability to meet its financial obligations. The court has scheduled the first creditors' meeting for February 11, 2025, where a bankruptcy administrator will be appointed to assess the company's assets and initiate the distribution process.