Haru Invest Executives Arrested for Alleged $826 Million Embezzlement

In South Korea, three executives of the cryptocurrency investment platform Haru Invest have been arrested, reports The Block.

Prosecutors from the Southern District of Seoul have accused the detained individuals of embezzling digital assets worth approximately 1.1 trillion Korean won ($826 million) from around 16,000 users.

The platform allegedly invested most of the clients’ funds through a single individual. The company assured that deposit management was conducted using “risk-free distributed investment methods.” The firm offered users of the Earn Plus product an annual yield of up to 12%.

Authorities began investigating Haru Invest and its partner crypto-lending company Delio after both firms suspended withdrawals in June 2023. The platform’s management cited issues with a service partner.

Subsequently, Haru Invest filed a claim against B&S Holdings. The company alleged that the consignment partner misled them with false reports, losing over $260 million due to the collapse of FTX.

In January, prosecutors issued an arrest warrant for the owner of B&S Holdings.

“During the investigation, we will thoroughly uncover the true nature of the alleged crime while doing our utmost to compensate for the damage and recover criminal proceeds,” stated law enforcement officials.

Earlier in September, South Korean police arrested 22 individuals accused of creating a cryptocurrency pyramid scheme worth $82.5 million.