Haru Invest Considers Server Suspension in Cost-Cutting Move Amid Ongoing Troubles
Summary:
Haru Invest, a cryptocurrency platform facing problems, is considering suspending its server to reduce maintenance costs. The announcement comes a few months after stopping withdrawals in June 2023. CEO Hugo Lee stated that this is part of broader strategies to lower all operational expenses. However, the news stirred discontent among users, questioning the supposed high costs of server maintenance. The potential shutdown follows Haru's halt of deposits and withdrawals in June 2023 and office closures. The company is also facing a class-action lawsuit for alleged fraud.
Embattled cryptocurrency firm Haru Invest is mulling over the idea of temporarily shutting down its server a few months following its cessation of withdrawals in June 2023. The intent behind potentially decommissioning the server is to cut down on the expenses related to server upkeep, according to CEO Hugo Lee who divulged the information on October 16. Lee underscored that the greatest segment of Haru Invest's fixed expenses stem from server maintenance, and as such, it's a pressing concern for the company. A forthcoming service hiatus to enable full membership data backup is currently in the works, although Lee noted they're yet to finalize plans regarding the server's suspension.
Haru's decision to consider shutting down the server is a part of its plan to cut down on the entirety of its operational costs, according to Lee. Among the company's recurrent expenses, Lee highlighted the costs of maintaining Haru's services, office operational costs, and membership communication expenses.
Lee assured the community that Haru's goal is to drastically reduce operating expenses in an effort to safeguard as much of the firm's assets as they can. He further affirmed that the resultant savings will be reserved for disbursing funds to users who have been unable to access their funds on the platform since June.
Lee's revelation of a possible suspension has sparked backlash from the Haru community, with most members expressing doubt over the high costs of server maintenance for the company. "Server expenses are trifling," complained one user on Haru's Telegram channel, which boasts around 3,100 subscribers. "Soon there'll be no servers due to astronomical costs of $200 a month," quipped another member, ironizing the situation. Reports indicate that the running costs for a server range from $35 to $500 monthly for small to medium corporations.
Lee's disclosure about the likely suspension of their server follows the discontinuation of deposits and withdrawals on the platform back on June 13, 2023. Consequently, the South Korean firm shut down its physical offices and laid off several employees, according to reports from local media outlets.
Haru Invest blamed the platform's challenges on fraudulent activities of the entrusted operator B&S Holdings, previously known as Aventus. Worried investors hurled allegations of a "rug pull" scheme at the firm, an assertion Haru vehemently denied.
In September, the CEO attended a court hearing to address concerns regarding the company's recent application for corporate rehabilitation. Lee informed the court that Haru Invest was cooperating with investigative bodies and making efforts to draw up a schedule for the return of users' assets. As of early October, the firm has not provided a timeline for the recovery of the funds in question.
There are reports of a class-action lawsuit against Haru Invest and major South Korean cryptocurrency firm Delio, where disgruntled investors are accusing both firms of fraud.
Published At
10/16/2023 11:52:37 AM
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