Bankrupt Haru Invest Plans to Refund Assets; No Specific Timeline Provided
Summary:
Haru Invest, a bankrupt South Korean yield platform, has made an announcement to return users' assets without specifying any timeframe. The decision follows fraudulent activities linked with B&S Holdings, after which Haru had to suspend all its operations in June. CEO Hugo Lee promises an equitable distribution of recovered assets to both domestic and international investors. The issue has impacted another crypto lending platform, Delio, leading to a suspension of its services as well.
Haru Invest, a South Korean yield platform that declared bankruptcy, has stated its intentions to refund all users' assets without giving a specific timeline for the process. During a Q&A event on October 2, Hugo Lee, CEO of Haru Invest, conveyed his company's intention to slowly distribute recovered assets across multiple phases. Lee mentioned that due to ongoing legal protocols, including cooperation with investigation agencies and the rehabilitation process, an immediate distribution of assets is impossible, making it hard to predict a timeline for the distribution.
Regarding asset distribution, the CEO further emphasized that equality would guide the process, giving equal importance to both domestic and international investors. Approximately 60% of the platform's users are situated outside South Korea, while the remaining 40% are local users.
In June, alleged fraudulent activities linked to consignment operator B&S Holdings led to the suspension of all deposits and withdrawals on Haru Invest, eventually resulting in the platform's bankruptcy. This incident had a ripple effect on Delio, another crypto lending platform, which had $1 billion in Bitcoin and $200 million in Ether and also stopped its deposit and withdrawal services in June.
Before declaring bankruptcy, Haru Invest had over 80,000 members, executed 9.8 million crypto-earn payouts, and recorded a total transaction volume of $2.27 billion. The platform had aimed for an annual yield of 12% on most products and had successfully raised $4 million at a $284 million valuation last September.
As of September 25, Haru Invest announced they were operating with minimal staff, rendering their website login non-functional.
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Published At
10/2/2023 3:07:59 PM
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