Bankrupt South Korean Yield Platform Haru Invest to Return Users’ Assets
The bankrupt South Korean yield platform, Haru Invest, has announced its plan to return users’ assets, although no specific timeframe has been provided. In a Q&A published on October 2, Hugo Lee, the CEO of Haru Invest, stated that the company will implement a phased asset recovery and distribution plan through the disposal of recovered assets.
“To note, however, as legal procedures including rehabilitation and cooperation with investigative agencies are still underway, we are essentially unable to distribute the assets on our own. Hence, predicting and telling you the asset distribution schedule is impossible at this time.”
Lee also reassured investors that they will receive their money back through an equitable distribution system instead of prioritizing creditors in South Korea. It is estimated that 60% of Haru Invest users are located abroad, while 40% are in Korea.
Haru Invest’s Suspension and Impact on Delio
In June, Haru Invest suspended all deposits and withdrawals after uncovering alleged fraudulent activities involving a consignment operator called B&S Holdings. Subsequently, the company filed for bankruptcy. This event also caused disruptions for fellow crypto lender Delio, which held $1 billion in Bitcoin (BTC) and $200 million in Ether (ETH) when it also suspended deposits and withdrawals in June.
Haru Invest’s Background and Current Status
Prior to its bankruptcy filing, Haru Invest claimed over 80,000 members, with 9.8 million crypto-earn payouts and a total transaction volume of $2.27 billion. The platform previously aimed to achieve an annual yield of 12% on most of its earn products. In September 2022, it raised $4 million with a valuation of $284 million.
In a September 25 update, Haru Invest stated that the company is being maintained with minimal operating personnel, which has resulted in the inability to log into the website.
Hot Take: Haru Invest Promises Asset Return Amidst Bankruptcy Proceedings
Haru Invest, the bankrupt South Korean yield platform, has reassured its users that their assets will be returned. Although no specific timeline has been provided, the company plans to implement a phased asset recovery and distribution strategy. The ongoing legal procedures and collaboration with investigative agencies prevent immediate distribution. Nevertheless, Haru Invest promises an equitable distribution regime that prioritizes all investors over creditors in South Korea. With a significant portion of its user base located abroad, the platform’s collapse has had a global impact. The events surrounding Haru Invest have also affected fellow crypto lender Delio. Despite these challenges, Haru Invest remains committed to addressing its users’ concerns and resolving the situation.
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