Executives from HaruInvest Arrested After Allegations of Massive Crypto Embezzlement

By: Eliza Bennet

Top executives from HaruInvest, a crypto deposit platform, have reportedly been arrested in South Korea on charges of defrauding customers and embezzlement exceeding 1 trillion won in crypto assets, affecting roughly 16,000 customers. The individuals in question are allegedly the co-CEOs known only as 'A' and 'B' along with the chief business officer 'C', who are said to have falsely promoted their investment strategy as risk-free while consuming most of the customer deposits from March 2020 to June 2023.

This crypto scandal was brought to light when HaruInvest abruptly ended crypto withdrawals on June 13, 2023, commencing reorganization proceedings soon after. Promising absolute profits for investors through algorithmic trading, HaruInvest likened its investment strategies to renowned trading firms like Jump Crypto and assured up to 12% annual interest rates on crypto deposits; pledges that now seem dubious.

HaruInvest described the cessation of withdrawals as a precautionary step after a business error, backed by misleading data from an auction operator, but after failure to resume withdrawals or satisfactorily explain the situation, speculations and anxieties among users have proliferated. This incident illustrates the complexities and potential issues within the still-evolving crypto sector, while sparking concerns around regulatory reform and trust in crypto investment platforms in South Korea and beyond.