Bankrupt CeFi firm Haru Invest hints at asset recovery ScrgruppEn

Bankrupt South Korean yield platform Haru Invest says it will return users’ assets, though no specific time frame has been set.

In a question and answer a class On October 2, Hugo Lee, CEO of Haru Invest, said that the company has a plan to “recover assets and distribute them in phases” in several rounds through the disposition of recovered assets. He wrote to me:

“But it should be noted that since the legal procedures including rehabilitation and cooperation with investigative agencies are still ongoing, we are essentially unable to distribute assets on our own. Therefore, predicting and informing you of the timeline for asset distribution is impossible at this time.”

During the session, Lee also assured that investors will get their money through a fair distribution system, rather than prioritizing creditors in South Korea. that estimated 60% of Haru Invest users are located overseas, compared to 40% in Korea.

In June, Haru Invest suspended all deposits and withdrawals after discovering alleged fraudulent activities surrounding freight operator, B&S Holdings. The company subsequently filed for bankruptcy. The collapse of Haru Invest also caused a contagion among fellow cryptocurrency lender Delio, which owned $1 billion in Bitcoin (BTC) and $200 million in Ethereum (ETH), when it also suspended deposits and withdrawals in June.

At the time of application, Haru Invest had claimed over 80,000 members, 9.8 million cryptocurrency payments, and $2.27 billion in total transactions. Haru previously targeted a 12% annual return on most of its for-profit products. Last September, it raised $4 million from a valuation of $284 million.

In an update on September 25, Haru Invest said the company is currently being maintained “with a minimal number of employees working.” As a result, logging into their website is no longer effective.

Important update from Haru Invest. https://t.co/igdTS2DaNp pic.twitter.com/E8mB6PeDQW

– Haru Invest (@haruinvest) June 13, 2023

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