According to The Block, South Korean prosecutors announced on Monday (5th) that they have arrested and detained three high-ranking officials of the cryptocurrency revenue platform Haru Invest, including two co-CEOs. An official from the Seoul Southern District Prosecutor’s Office stated in an interview that the prosecutors accused these three individuals of stealing approximately 1.1 trillion Korean won (approximately $826 million) worth of cryptocurrency from about 16,000 users.
Haru is also accused of issuing false advertisements claiming that the platform manages customer funds through “risk-free decentralized investment technology,” but in reality, most of the funds were invested by an individual. It is reported that Haru Invest offers users of its Earn Plus product an annual yield of up to 12%.
After Haru and the cryptocurrency lending company Delio announced the suspension of withdrawals in June 2023, the local government continued to investigate these two companies. At that time, the day after Haru Invest announced the suspension of deposit and withdrawal functions, it filed a criminal lawsuit against its entrusted operator B&S Holdings, accusing it of deceiving Haru with false reports while suffering losses of over $260 million in the FTX collapse. On the same day, Delio announced the suspension of withdrawals and blamed Haru for the sudden halt in withdrawals.
Last month, South Korean prosecutors issued an arrest warrant for a major shareholder of B&S named “Bang.”
The Prosecutor’s Office stated in a statement:
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