South Korean Crypto Scandal: Executives Arrested Over $826M Embezzlement
Earlier this week, South Korean authorities revealed that they had taken into custody three executives associated with Haru Invest, a cryptocurrency yield platform.
Among those arrested were both co-CEOs of the platform. The arrests came after allegations surfaced that the trio had siphoned off a staggering 1.1 trillion Korean won (equivalent to approximately $826 million) worth of digital assets from an estimated 16,000 users.
Sources from the Seoul Southern District Prosecutor’s Office disclosed that the executives stand accused of orchestrating the misappropriation of user funds, purportedly diverting substantial portions of customer deposits through an undisclosed individual. Furthermore, it’s reported that Haru Invest had falsely touted its investment strategies as “risk-free distributed investment techniques” while attracting investors with promises of returns as high as 12% through its Earn Plus product.
The investigation into Haru Invest gained momentum following a sudden suspension of withdrawals by the platform on June 14, 2023. This development prompted scrutiny not only of Haru Invest but also of its erstwhile collaborator, Delio, a crypto lending platform. Delio cited Haru Invest’s abrupt halt of deposit and withdrawal services as the reason for its own suspension of operations on the same day.
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Adding another layer to the saga, Haru Invest lodged a criminal complaint against B&S Holdings, an entity with which it had engaged in consignment operations. Haru Invest alleged that B&S Holdings had provided false reports, ultimately leading to significant financial losses, purportedly in excess of $260 million, linked to the collapse of FTX.
The legal proceedings took an intriguing turn last month when South Korean prosecutors issued an arrest warrant for an individual identified only as Bang, a major shareholder in B&S Holdings. The individual’s full name remains undisclosed due to privacy regulations in South Korea.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
