Haru Invest Plans Asset Return After Bankruptcy

The company suspended deposits and withdrawals in June due to alleged fraudulent activity and subsequently filed for bankruptcy.

Haru Invest Plans Asset Return After Bankruptcy
Haru Invest Plans Asset Return After Bankruptcy

Haru Invest, a bankrupt South Korean yield platform, promises to return users’ assets, although no timeframe is specified.

Hugo Lee, CEO of Haru Invest, stated during a question-and-answer session on October 2 that the company has a plan for “phased asset recovery and distribution” through the sale of recovered assets.

“To note, however, as legal procedures including rehabilitation and cooperation with investigative agencies are still underway, we are essentially unable to distribute the assets on our own. Hence, predicting and telling you the asset distribution schedule is impossible at this time.”

During the session, Lee also guaranteed that investors would receive their money back through an equitable distribution system, as opposed to creditors in South Korea being given priority.

60% of Haru Invest users are located outside of Korea, compared to 40% in Korea. Haru Invest suspended all deposits and withdrawals in June after detecting allegedly fraudulent activity involving B&S Holdings, a consignment operator.

Subsequently, the company filed for bankruptcy. The failure of Haru Invest infected Delio, which held $1 billion in Bitcoin and $200 million in Ether when it too suspended deposits and withdrawals in June.

At the time of filing, Haru Invest claimed to have over 80,000 members, 9.8 million crypto-earn distributions, and total transactions worth $2.27 billion.

Historically, Haru targeted a 12% annual yield on the majority of its earned products. In September 2012, the company raised $4 million at a valuation of $284 million.

In a September 25 update, Haru Invest said that the company is presently being maintained “with a minimum number of operating personnel.” As a consequence, its website no longer supports logins.