Plan for Phased Asset Recovery and Equitable Distribution
The bankrupt South Korean yield platform, Haru Invest, has announced that it will be returning users' assets. Although no specific timeframe has been given, the CEO, Hugo Lee, stated that the firm has a plan for "phased asset recovery and distribution" through the disposition of recovered assets.
However, due to ongoing legal procedures, including rehabilitation and cooperation with investigative agencies, Haru Invest is currently unable to distribute the assets on its own. Lee mentioned that predicting and disclosing the asset distribution schedule is impossible at this time.
Equitable Distribution Regime for Investors
During a recent questions and answers session, Lee assured investors that their money will be returned via an equitable distribution regime. This means that creditors in South Korea will not be prioritized. It is worth noting that approximately 60% of Haru Invest users are located overseas, while the remaining 40% are in Korea.
Background: Alleged Fraudulent Activities and Bankruptcy
In June, Haru Invest suspended all deposits and withdrawals after discovering alleged fraudulent activities involving a consignment operator named B&S Holdings. Subsequently, the firm filed for bankruptcy. This collapse had a ripple effect on fellow crypto lender Delio, which also suspended deposits and withdrawals in June. Delio held $1 billion in Bitcoin (BTC) and $200 million in Ether (ETH).
At the time of filing, Haru Invest reported having over 80,000 members, 9.8 million crypto-earn payouts, and $2.27 billion in total transactions. The platform aimed to provide an annual yield of 12% on most of its earn products. Last September, it raised $4 million on a $284 million valuation.
Current Status: Minimum Operating Personnel
In a September 25 update, Haru Invest revealed that the company is currently being maintained "with a minimum number of operating personnel." As a result, its website login is no longer functional.
