Several top executives of the embattled cryptocurrency yield platform, Haru Invest, have been apprehended by South Korean prosecutors, marking a significant development in the ongoing investigation into the platform’s troubles.
The arrests were made by the virtual asset crime investigation unit of the Seoul Southern District Prosecutors Office, as reported by local news agency Yonhap on February 6th.
The key figures taken into custody include Haru Invest’s CEO and two other high-ranking executives.
They face serious charges of embezzling a staggering 1.1 trillion won (approximately $830 million) in cryptocurrency from around 16,000 Haru Invest customers.
Prosecutors assert that the executives systematically misappropriated the majority of funds deposited by customers over a span of three years, from March 2020 to June 2023.
During this period, they allegedly promoted Haru Invest as a stable and secure platform employing “risk-free diversified investment techniques.”
This development comes on the heels of Haru Invest’s latest cryptic announcement, dated February 4th, which reiterated the lack of concrete information regarding ongoing investigations and the overall situation following the detention of Bang Jun-ho, the major shareholder of B&S Holdings.
The company’s statement, signed by CEO Hugo Lee, reflects their continued efforts towards asset recovery.
READ MORE: Bitcoin Predicted to Reach New All-Time Highs in 2024 Despite Halving Challenges
Haru Invest initially sent shockwaves through the cryptocurrency community when it abruptly halted all withdrawal requests on June 13, 2023.
This sudden move prompted Delio, a depository and management firm that had entrusted some of its funds to Haru Invest, to follow suit and suspend withdrawals the following day.
The cryptocurrency platform claimed that these disruptions were the result of alleged fraudulent activities conducted by their consignment operator, B&S Holdings, formerly known as Aventus.
Haru Invest, established in 2019, had marketed itself as a cryptocurrency yield platform offering investors the potential to earn annual interest rates of up to 12% on their digital asset deposits.
In response to the suspension of withdrawals, Delio and other impacted investors launched a class-action lawsuit against Haru Invest in June 2023.
This legal action is part of broader efforts to seek accountability and restitution for the losses incurred by thousands of customers affected by the platform’s sudden suspension of services.
The arrests of the top Haru Invest executives mark a significant step towards achieving justice and resolving this high-profile cryptocurrency scandal in South Korea.
Discover the Crypto Intelligence Blockchain Council
