- Haru Invest plans to temporarily shut down servers due to high maintenance costs and store data for potential future use.
- CEO Hugo Lee aims to restore user assets and ensure fair distribution as part of the bankruptcy reorganization.
- Haru Invest intends to prioritize assets recovered from the asset management company for distribution.
South Korean digital asset management platform Haru Invest announced it will temporarily shut down its servers in the coming weeks as it seeks to cut costs amid ongoing bankruptcy restructuring.
According to Chinese journalist Colin Wu, Haru Invest said maintaining its servers represents the company’s largest fixed operating expense. By preserving data but powering down servers, Haru aims to reduce expenses while determining next steps.
Haru Invest is currently in the process of establishing a database to document the financial credits and debts of its users. The company intends to distribute assets in phases after confirming the extent of losses and finalizing the asset allocation plan.
However, a specific timeline for this distribution has not been provided due to limited information regarding the exact amount of losses.
On June 13, 2023, Haru Invest announced a temporary suspension of new deposits and investment features in response to the challenges and uncertainties prevailing in the crypto market.
On June 20, 2023, Haru Invest’s CEO, Hugo Lee, extended a sincere apology for the concerns arising from the recent incident and acknowledged the need for prompt communication. He expressed his deepest regret for the inconvenience caused to investors and affirmed the company’s commitment to improving the situation.
Haru Invest suspended all deposits and withdrawals in June after discovering allegedly fraudulent activities surrounding a consignment operator, B&S Holdings. The firm subsequently filed for bankruptcy.
In a Q&A published on October 2, 2023, Hugo Lee said the bankrupt South Korean yield platform will return users’ assets, although no particular timeframe was given.
The Haru saga serves as another warning about the risks of offering eye-popping yields without transparency. As crypto lending reckonings continue, investors may turn toward more regulated options in the future.
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