Summary
South Korean prosecutors have arrested and detained three executives of crypto yield platform Haru Invest, including its two co-CEOs, for allegedly stealing $826 million worth of cryptocurrencies from users. Haru Invest is also accused of falsely advertising risk-free distributed investment techniques and investing client deposits through one individual. The investigation into Haru and crypto lender Delio began after both firms suspended withdrawals on June 14. Haru filed a criminal complaint against consignment operator B&S Holdings, alleging deception and losses in the collapse of FTX. Prosecutors are working to identify the true nature of the alleged crime and recover damages.
Key Points
1. South Korean prosecutors have arrested and detained three executives of Haru Invest, a crypto yield platform, including its co-CEOs. The executives are accused of stealing approximately $826 million worth of cryptocurrencies from around 16,000 users.
2. Haru Invest allegedly invested most of its client deposits through one individual and falsely claimed to use “risk-free distributed investment techniques.” The platform offered up to 12% yield for its Earn Plus product users.
3. Local authorities have been investigating Haru and crypto lender Delio after both firms abruptly suspended withdrawals. Delio attributed the suspension to the sudden halt of deposits and withdrawals at Haru Invest, with which Delio had collaborated. Haru filed a criminal complaint against consignment operator B&S Holdings on the same day, alleging deception and loss of over $260 million in the collapse of FTX.