- The defunct South Korean yield platform Haru Invest has said it will return users’ assets, although no particular timeframe was given.
- The platform CEO, Hugo Lee, has elaborated on the roadmap towards asset recovery and distribution as well as emphasized the intricate legal intricacies hindering the swift resolution.
- Lee has also assured investors they would receive their money back via an equitable distribution regime instead of prioritizing creditors in South Korea.
Bankrupt South Korean centralized finance (CeFi) venture Haru Invest has hinted at a structured asset recovery plan. During a Q&A session on October 2, the platform CEO, Hugo Lee, provided insights into a phased recovery plan, though the precise timeline remains under wraps. This move offers a glimmer of hope to its users, who have been in turmoil since the firm’s decline amidst allegations of fraudulent activities.
Hugo Lee elaborated on the roadmap towards asset recovery and distribution. However, he emphasized the intricate legal intricacies hindering the swift resolution. He said,
‘’ 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.’’
Lee has further assured investors of a fair distribution mechanism, steering clear of a Korea-centric approach. It’s pivotal to note that a majority, a hefty 60% of Haru Invest’s clientele, is international, contrasting the 40% native to Korea. This pledge offers some respite to the global users left in the lurch since the onset of the crisis.
Haru Invest’s Collapse
Haru Invest suspended all its deposit and withdrawal services in June after discovering allegedly fraudulent activities surrounding a consignment operator, B&S Holdings. The firm subsequently filed for bankruptcy.
The platform’s collapse notably caused contagion among fellow crypto lender Delio, which held $1 billion in Bitcoin and $200 million in Ether when it, too, suspended deposits and withdrawals in June.
Since the tumultuous events, Haru Invest has slimmed down to a skeletal operational structure. Current circumstances have rendered the company’s website login non-functional, underscoring the extensive challenges Haru faces. However, the recent address by its CEO has sparked some hope and light for its users. In a September 25 update, Haru Invest said that the company is currently being maintained “with a minimum number of operating personnel.”
On the other hand, during the bankruptcy filing, Haru Invest claimed over 80,000 members, 9.8 million crypto-earn payouts, and $2.27 billion in total transactions. Haru previously targeted an annual yield of 12% on most of its earned products. In September 2022, it raised $4 million on a $284 million valuation.
In retrospect, Haru Invest’s implosion not only cast a pall over its lofty ambitions but also raised eyebrows on the integrity of burgeoning CeFi platforms. As the firm navigates the legal maze toward asset recovery, the crypto community will be keenly watching, hoping for a precedent of resilience.