South Korea arrests Haru Invest executive for embezzlement of $826 million

Prosecutors said Monday that they had arrested and detained three executives of cryptocurrency yield platform Haru Invest, including two co-CEOs.

Seoul prosecutors have charged three people with stealing about 1.1 trillion won worth of cryptocurrency from about 16,000 users, an official at the Seoul Southern District Prosecutors’ Office told The Block.

One day, he was accused of investing most of his customers’ deposits through one individual while falsely advertising that the deposits were managed using ‘risk-free diversified investment techniques.’ Haru Invest offer Earn Plus products offer returns of up to 12% to users.

Local authorities have been investigating Haru and cryptocurrency lending company Delio after they suddenly stopped withdrawals on June 14, 2023. Delio announced that the cause was the sudden suspension of deposits and withdrawals by Haru Invest, with which Delio cooperated, this morning.

On the same day, I submitted a petition. criminal charges It alleged that consignment operator B&S Holdings defrauded the company through false reporting, resulting in losses of more than $260 million due to the FTX collapse.

Last month, the prosecution issued an arrest warrant for B&S’s majority shareholder, Mr. Bang. Bang’s name is not being released due to South Korea’s privacy regulations.

The prosecution said, “We will thoroughly investigate the true nature of the crime (alleged crime) through the investigation, while doing our best to recover the damage and recover the proceeds of the crime.”

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