South Korean Prosecutors Arrest Haru Invest Executives for Alleged Embezzlement
South Korean prosecutors have arrested three executives, including the co-CEOs, of Haru Invest, a crypto yield platform. The executives are accused of embezzling around $826 million in crypto from 16,000 users. The platform allegedly entrusted most client deposits to one individual while falsely claiming to use “risk-free distributed investment techniques.” Haru Invest attracted users with promises of up to 12% yield through its Earn Plus product.
Investigation into Haru Invest and Delio
The investigation into Haru Invest and crypto lender Delio began after both platforms suspended withdrawals on June 14, 2023. The Financial Services Commission seized all assets owned by Delio’s customers and the company, as well as other wallets and ledgers. Haru Invest recently released a statement signed by CEO Hugo Lee, stating that there were no new updates regarding the ongoing investigations and circumstances following the apprehension of Bang Jun-ho, the primary shareholder of B&S Holdings.
Increased Regulatory Scrutiny in South Korea
The arrest coincides with South Korea’s increased regulatory scrutiny on cryptocurrency lending due to previous failures. In an effort to increase transparency, high-ranking public officials are now required to disclose their crypto holdings under new legislation. Major domestic crypto exchanges in South Korea also plan to establish a separate information system to launch in June of the following year.
Hot Take: Continued Crackdown on Crypto-Related Crimes in South Korea
The arrest of Haru Invest executives highlights South Korea’s commitment to cracking down on crypto-related crimes. With the recent failures and embezzlement cases, authorities are taking steps to increase transparency and protect investors. The regulatory scrutiny and mandated disclosure of crypto holdings aim to establish a more secure and trustworthy crypto landscape in the country. As South Korea continues to investigate and prosecute such cases, it sends a strong message that fraudulent activities will not be tolerated in the crypto industry.
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