Crypto Yield Firm Haru Invest Execs Arrested in South Korea

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By BitcoinWiki News

Key Takeaways:

– Top executives of Haru Invest arrested by South Korean prosecutors
– Allegedly laundered 1 trillion Won ($752 million) in crypto fraud
– Deceived deposits of around 1,600 customers
– Misrepresented risks to customers with false advertising of up to 12% yield returns
– Invested most of the coins deposited from customers from March 2020 to June 2023
– Announced suspension of deposit and withdrawal requests in June 2023
– Closed office in Gangnam-gu, Seoul, surprising users
– Delio, a depository firm that invested in Haru Invest, stopped withdrawals the next day, sparking controversy over a ‘rug-pull’
– At least 100 investors filed a complaint with South Korean prosecutors against the executives of the two companies on fraud under the Specific Economic Crimes Act
– Local authorities have been investigating both Haru Invest and Delio after their withdrawals were suspended


Title: Arrest of Haru Invest Executives for Crypto Fraud

Introduction
Top executives of Haru Invest, a South Korean crypto yield platform, have been arrested by the county’s prosecutors on charges of crypto fraud worth 1 trillion Won ($752 million).

Charges and Allegations
The crypto investigation arm of the Seoul Southern District Prosecutors’ Office arrested three people, including the CEO of Haru Invest, for allegedly laundering consumer assets worth 1 trillion Won. The company deceived deposits of around 1,600 customers and falsely advertised up to 12% yield returns while misrepresenting its risks to customers.

Rug Pull and Investigations
The platform announced suspension of deposit and withdrawal requests in June 2023, leading to accusations of a ‘rug pull’, a common scam in the crypto space. Haru Invest closed its office in Seoul, and Delio, a depository firm that invested in Haru, also abruptly stopped withdrawals the next day. At least 100 investors filed a complaint with South Korean prosecutors against the executives of both companies for fraud under the Specific Economic Crimes Act, prompting local authorities to launch investigations.

Conclusion
The arrest of the top executives of Haru Invest for alleged crypto fraud and the subsequent investigation by South Korean prosecutors highlight the risks associated with investing in the crypto industry, including fraudulent schemes and scams.

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