South Korean prosecutors took preemptive action and imposed a travel ban on executives from the crypto yield platform Haru Invest. The latter has halted withdrawals for users across 140 countries.
Crypto firm Haru Invest’s executives have had a travel ban imposed on them by South Korean prosecutors. Local media outlets reported that Haru, Delio, and B&S Holdings all had this travel ban imposed on them for “serial suspending withdrawals” fraud.
Fraud Complaints Spark Travel Ban for Haru Invest
South Korean prosecutors imposed the ban as a preemptive measure to prevent the potential migration of executives from the company. The Seoul Southern District Prosecutors’ Office stated that there was an investigation going on for potential fraud, with the statement coming out on June 25.
Specifically, executives from Haru Investment, Delio CEO Chung Sang-ho, and a B&S major shareholder have been banned from traveling. The statement also explains that “Bang may have provided the cause of the suspension of a series of deposits and withdrawals.” This suspension allegedly began on June 13.
Haru Halted Withdrawals
Haru Invest halted withdrawals for 80,000 users across 140 countries on that day, stating that it was a “tough decision” and was working on a “contingency plan to rectify the situation.” It did not disclose specific details at the time.
The Singapore-registered firm described the issue as one brought on by one of its service providers. CEO Lee Hyung-soo said,
“In a situation where investor protection is the top priority, I cannot talk about a specific partner company because I am concerned that sensitive issues will be exposed first and I will not be able to get my hands on it.”
Haru Lays Off 100 Employees Amidst Legal Woes
To add to the woes, Haru Invest fired more than 100 employees as lawsuits appear on the horizon. There is a belief that the chances of full recovery of the funds are unlikely.
When BeInCrypto contacted Haru Invest, the PR team responded with an automated reply that stated the team had all been laid off. More details have not been disclosed, but the increasing actions of prosecutors should offer some clarity. The action comes at a time when South Korea is accelerating its regulation of the crypto industry.
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