Three Executives of Haru Invest Arrested for Crypto Theft
Three executives, including the CEO, of crypto yield platform Haru Invest have been arrested in South Korea. They have been charged with allegedly stealing $826 million in crypto from 16,000 customers. The Seoul Southern District Prosecutors’ Office’s Joint Investigation Team of Virtual Asset Crimes is leading the investigation.
Promising “Risk-Free Decentralized Investment Techniques”
Haru Invest claimed to offer risk-free decentralized investment techniques but allegedly siphoned off and invested customers’ cryptocurrency deposits instead. The firm, which managed around $1 billion in assets, promised double-digit yields on cryptocurrencies such as Bitcoin, Ethereum, Tether, USDC, and XRP.
Withdrawal Freeze and Office Closure
In June 2023, Haru Invest froze withdrawals for 80,000 users in 140 countries due to an issue with a service partner. At the same time, the company closed its offices in Seoul and transitioned to a work-from-home setup.
Arrest Warrant Issued for Person of Interest
In January 2024, South Korean prosecutors issued an arrest warrant for a person of interest named Bang in connection with the investigation into Haru Invest and crypto lending firm Delio. Both companies suspended user withdrawals in June 2023.
Fraudulent Management Reports Allegations
In response to Haru Invest’s criminal complaint, Bang, who was reportedly a majority shareholder in B&S Holdings, was accused of fraudulently providing management reports containing false information.
Hot Take: Trustworthy Platforms are Essential for Crypto Investors
The arrest of Haru Invest executives highlights the importance of choosing trustworthy platforms for your crypto investments. The promise of high yields and risk-free investments can sometimes be a red flag. It is crucial to conduct thorough research, verify the legitimacy of the platform, and carefully consider the risks involved before depositing your funds. This case serves as a reminder to exercise caution and due diligence in the crypto space.
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