- Three individuals have been arrested in South Korea for allegedly operating a $750 million crypto scam, Haru Invest
- South Korean authorities apprehended the trio, including the CEO, on charges of defrauding customers of approximately 1 trillion won
- Haru Invest, a virtual asset deposit platform promising returns of up to 14%, is accused by prosecutors of conducting no such financial operation
Three individuals have been arrested in South Korea accused of operating a $750 million crypto scam called Haru Invest. According to a report in Yonhap News, the Seoul Southern District Prosecutors’ Office’s Virtual Asset Crime Joint Investigation Team apprehended the trio, including the CEO, on charges of defrauding customers of approximately 1 trillion won ($750 million) worth of coins. Haru Invest is a virtual asset deposit platform that promises returns of up to 14%, but prosecutors allege that operators are conducting no such financial operation.
16,000 Customers Affected
The suspects, two co-representatives of Haru Invest and its CEO, allegedly failed to return coins valued at around 1.1 trillion won after receiving deposits from 16,000 customers, violating fraud statutes under the Aggravated Punishment Act for Specific Economic Crimes.
An investigation revealed that the accused diverted most of the deposited coins for personal investment purposes between March 2020 and June 2023, despite falsely assuring customers of stable operations using risk-free diversified investment techniques.
Withdrawals Frozen
In a move that is out of the crypto investment scammer playbook, withdrawals were abruptly halted on June 13th last year, leading to an outcry from investors. Delio, another company that deposited funds into Haru Invest, also suspended withdrawals the following day, triggering suspicions of a rug pull.
Approximately 100 investors lodged complaints with prosecutors following this action, alleging fraud against executives of both companies under the Specific Economic Crimes Act.
Haru Invest had attracted attention by advertising high interest rates of up to 14% per annum for virtual asset deposits, but it seems that the operators were either lining their pockets or making bad bets with customer funds and trying to repay them from fresh deposits, typical of a Ponzi scheme.
