Key takeaways:
- After stopping withdrawals in June 2023, Haru Invest’s unsatisfactory cryptocurrency platform intends to terminate its server within a few months.
- Lee added in the release that the company does not yet have a solid plan for the server suspension.
After stopping withdrawals in June 2023, Haru Invest’s unsatisfactory cryptocurrency platform intends to terminate its server within a few months.
Haru Invest is thinking of shutting down its server to reduce the server maintenance costs of services, the company’s CEO, Hugo Lee, announced on Oct. 16. The CEO emphasized that the server maintenance cost accounts for the “largest percentage of fixed costs” at Haru Invest and is a priority for the firm. Lee stated:
“We expect to continuously incur the cost of communication with members until we distribute members’ assets, so our plan is that this should be the last item to save on.”
Lee added in the release that the company does not yet have a solid plan for the server suspension, but they intend to suspend the service in a few weeks and back up all member information.
The CEO of Haru Invest stated that the company is “actively devising various strategies” to minimize the costs related to providing its services, which coincides with the company’s decision to shut down the server. Lee continued:
“Some of the current fixed expenditures include the upkeep of Haru Invest services, the cost of workspace like the office, and the cost of communication with our members,”
According to the CEO, Haru Invest wants to keep as many of the company’s assets as possible by cutting back on operating expenses. Additionally, he said these assets would be added to the pool of funds given to consumers whose money has been trapped on the platform since June.
A few months have passed since June 13, 2023, when Haru Invest stopped accepting deposits and withdrawals when Lee announced the impending server suspension. Following that, the South Korean company shut down and let go of dozens of workers, according to reports from regional news sources.
According to Haru Invest, consignment operator B&S Holdings, formerly Aventus, engaged in fraudulent conduct, which was the source of the problems on its platform. Concerned investors claimed the company was planning a rug pull, but Haru Invest refuted the claims.
In September, Lee appeared in court to address issues with its most recent application for corporate rehabilitation. He declared that Haru Invest was striving to create a schedule to recover users’ assets and collaborated with the investigative authorities.
Delio, a significant cryptocurrency platform in South Korea, and Haru Invest are allegedly facing a class-action lawsuit from angry investors who are accusing both businesses of deceit.
