Key takeaways:
- A group of victims impacted by the abrupt halt of withdrawals from Haru Invest are being approved for compensation.
- South Korean authorities have prohibited officials of Haru Investment from leaving the country.
A delegation of aggrieved users of the digital asset management platform Haru Invest is reportedly receiving loss certification data in South Korea, according to the reports from News1.
On June 20, the victims whose funds were connected to Haru Invest formed a delegation to normalize Haru Invest and sent the company a unified letter. On June 23, it began to receive the certification of the damage amount and to open a communication channel for only actual victims.
About 350 victims had finished the identification process within three days, and those connected to Haru Invest had invested a total of nearly 103 billion won (almost $79 million).
The amount is anticipated to rise significantly more. This results from the approximately 1,000 people who have not completed the certification process. The harm could total hundreds of billions of won because more people are waiting than those who have received certification.
In order to avoid filing a virtual asset operator report with the local financial authorities, Haru Invest did not offer Korean language services and instead concentrated on global sales. It is widely believed that there are many victims abroad as a result. The head of the delegation said:
“There is also a victim group among overseas users such as the United States and South America.”
On June 13, the struggling company abruptly stopped accepting withdrawals because of a problem with B&S Holdings, a “partner company” engaged in cryptocurrency trading. The company has let go of over 100 employees since it stopped processing withdrawals and deposits. In response, Haru Invest declared that it would bring legal action against B&S Holdings. Unfortunately, consumer interaction has backfired on this procedure.
Haru Invest promised to respond to client inquiries by this month’s 26th. Today, Haru Investment declared on its website that it had realized the value of user communication and that it would now address the problem by setting up a channel for user communication.
According to a June 25 article from Digital Asset, South Korean authorities have prohibited Haru Investment officials from leaving the country due to criminal charges of “serial suspending withdrawals” fraud. The ban affects unnamed executives from Haru Invest, the CEO of Delio Chung Sang-ho, and a B&S stockholder named Bang.
Even though the CEO of Delio, Chung Sang-ho, initially denied any involvement with Haru, he later acknowledged that they had put cryptocurrency into the struggling company. Delio is apparently being looked at by South Korean police for theft and negligence.
