- Haru Invest executives were arrested for embezzling $826 million.
- The platform allegedly misrepresented risks and offered investors a 12% return.
- The prosecutor's office is taking the necessary measures to return funds to clients.
The South Korean prosecutor's office announced the detention of three leaders of the cryptocurrency platform Haru Invest. They are accused of stealing cryptocurrencies worth 1.1 trillion Korean won (about $826 million at the time of writing), reports The Block with reference to representatives of the Seoul Southern District Prosecutor's Office.
According to the source, on June 14, 2023, Haru Invest and crypto lender Delio suspended deposits and withdrawals. On the same day, Haru Invest accused operator B&S Holdings of providing false reports and the associated loss of $260 million.
Local authorities have launched an investigation into this matter. In January 2024, prosecutors issued an arrest warrant for one of the majority shareholders of B&S Holdings.
Subsequently, it turned out that the Haru Invest cryptocurrency platform distorted information about risks and offered clients to invest funds with a yield of 12%.
Management said in a statement that client deposits are managed through “risk-free, distributed investment techniques.” Meanwhile, this information was not true. Allegedly, the platform invested most of the client funds through one person.
“We will determine the true nature of the crime through the investigation, while doing everything possible to make amends and recover funds,” the prosecutor’s office said in a statement.
Let us recall that in November 2023, the Hounax crypto platform was accused of fraud and theft of $15.4 million. We also reported that a South Korean official stole $150,000 and invested it in cryptocurrency.