South Korean Authorities Detain Haru Invest Executives Over Embezzlement Allegations

Crypto News- In a dramatic turn of events, South Korean prosecutors have made a significant breakthrough in the case of the embattled cryptocurrency yield platform, Haru Invest, which sent shockwaves through the industry when it abruptly suspended withdrawals in June 2023.

South Korean Authorities Detain Haru Invest Executives Over Embezzlement Allegations

Reports from the virtual asset crime investigation unit of the Seoul Southern District Prosecutors Office reveal that three key figures behind Haru Invest, including the CEO, have been apprehended. The executives stand accused of orchestrating a massive cryptocurrency heist, allegedly siphoning off a staggering 1.1 trillion won (approximately $830 million) from the accounts of 16,000 Haru Invest customers.

The prosecution alleges that the executives engaged in a sophisticated scheme spanning over three years, from March 2020 to June 2023, wherein they purportedly diverted funds entrusted to Haru Invest by unsuspecting investors. They allegedly used false advertising, promoting the platform as employing “risk-free diversified investment techniques” while in reality, engaging in fraudulent activities.

Cryptocurrency Scandal Unveiled: South Korean Prosecutors Crack Down on Haru Invest Executives

The latest developments come hot on the heels of a cryptic announcement by Haru Invest just days prior, wherein they offered “no particular updates” and emphasized their ongoing efforts for asset recovery following the detention of Bang Jun-ho, a major shareholder of B&S Holdings, the company allegedly implicated in the scandal.

Haru Invest’s decision to suspend withdrawals in June 2023 sent shockwaves through the cryptocurrency community, prompting further scrutiny into the operations of similar platforms. Delio, another firm with ties to Haru Invest, also halted withdrawals shortly thereafter, compounding the crisis.

Founded in 2019, Haru Invest had initially garnered attention for its promise of lucrative returns, boasting annual interest rates of up to 12% on cryptocurrency deposits. However, the suspension of withdrawals triggered a wave of discontent among investors, leading to a class-action lawsuit filed against the company by Delio and other aggrieved parties in June 2023.