South Korean authorities have apprehended three top-level executives from the yield platform Haru Invest, alleging their involvement in embezzling 1.1 trillion won (equivalent to $828 million) worth of cryptocurrency from approximately 16,000 clients.
According to Yonhap News, the company’s CEO is purportedly among those detained by the Joint Investigation Team of Virtual Asset Crimes, operating under the Seoul Southern District Prosecutors’ Office.
Haru Invest, previously touting lucrative double-digit yields for crypto deposits, has encountered turbulence in recent times. It ceased withdrawal and deposit services in June of the previous year, citing complications with service partners, and subsequently terminated the employment of about 100 staff members. Yonhap’s report indicates suspicions surrounding the platform’s involvement in a fraudulent scheme termed as a “rug pull,” where crypto project founders vanish with investors’ assets.
Prosecutors have leveled accusations against the Haru executives, asserting their misappropriation of customer funds spanning from March 2020 to June 2023. Despite advertising the use of “risk-free, diversified investment techniques,” authorities allege foul play in the handling of client assets.
