South Korean prosecutors announced on Monday that they had arrested and detained three executives of crypto earnings platform Haru Invest, including two of its co-CEOs.
Seoul prosecutors have charged three people with stealing about 1.1 trillion won ($826 million) in cryptocurrency from about 16,000 users, an official at the Seoul Southern District Prosecutor's Office said.
Haru also used a single individual to invest the majority of customer deposit funds while falsely advertising that their deposits were managed through "risk-free distributed investment technology." Haru Invest claims to offer up to 12% yield to users of its Earn Plus product. (The Block)
According to previous news, South Korean prosecutors recently issued an arrest warrant for Bang on suspicion of fraud and breach of trust. Bang is accused of being a key figure in the ongoing suspension of withdrawals from cryptocurrency lending platform Delio and investment management firm Haru Invest. Bang allegedly owns a majority stake in B&S Holdings, which Haru Invest claims is the root cause of the continuous service suspension.
On June 14, 2023, Delio suspended user withdrawals, blaming the suspension on the sudden halt of deposits and withdrawals by Haru Invest, which it was working with. On the same day, Haru filed a criminal complaint against B&S Holdings, accusing it of defrauding the company by providing false management reports and claiming that B&S Holdings lost 350 billion won (approximately $262 million) worth of funds in the FTX exchange collapse.