Haru Invest Executives Arrested in South Korea Amid Embezzlement Charges

South Korean authorities have taken significant action against executives of the troubled cryptocurrency yield platform, Haru Invest, which had suspended withdrawals in June 2023. The virtual asset crime investigation unit of the Seoul Southern District Prosecutors Office announced the arrest of three key individuals linked to Haru Invest. Among those arrested are the CEO and two other executives, all facing charges related to embezzling 1.1 trillion won ($830 million) worth of cryptocurrency from 16,000 Haru Invest customers.

Allegations of Misappropriation

According to the prosecution's claims, Haru Invest executives engaged in misappropriation by reinvesting most of the coins deposited by customers between March 2020 and June 2023. They allegedly promoted Haru Invest as a stable business employing "risk-free diversified investment techniques," which proved to be false.

This development follows a recent "no information" announcement from Haru Invest, where the company acknowledged that there were no specific updates to share and expressed its ongoing efforts for asset recovery. Haru Invest abruptly halted withdrawals on June 13, 2023, and Delio, a depository and management firm with funds at Haru Invest, also suspended withdrawals the next day.

Background on Haru Invest

Established in 2019, Haru Invest operated a cryptocurrency yield platform, enticing investors with the promise of earning annual interest rates of up to 12% on cryptocurrency deposits. Following the withdrawal suspension, Delio and other affected investors initiated a class-action lawsuit against Haru in June 2023.

These recent arrests signal a significant development in the ongoing investigation into Haru Invest's activities and the alleged misappropriation of customer funds, as South Korean authorities work to hold those responsible accountable.