Bankrupt CeFi firm Haru Invest hints at asset recovery
Bankrupt South Korean yield platform Haru Invest says it will return users' assets, although no particular timeframe is given.
In a questions and answers session on October 2, Hugo Lee, Haru Invest's CEO, said the firm has a plan for "phased asset recovery and distribution" in several rounds through the disposition of recovered assets. Lee wrote:
During the session, Lee also assured that investors would receive their money back via an equitable distribution regime, instead of prioritizing creditors in South Korea. An estimated 60% of Haru Invest users are located overseas, compared to 40% in Korea.
In June, Haru Invest suspended all deposits and withdrawals after discovering allegedly fraudulent activities surrounding a consignment operator, B&S Holdings. The firm subsequently filed for bankruptcy. Haru Invest's collapse also caused contagion among fellow crypto lender Delio, which held $1 billion in Bitcoin (BTC) and $200 million in Ether (ETH), when it, too, suspended deposits and withdrawals in June.
At the time of 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 earn products. Last September, it raised $4 million on a $284 million valuation.
In a September 25 update, Haru Invest said that the company is currently being maintained "with a minimum number of operating personnel." As a result, its website login is no longer functional.
Important update from Haru Invest. https://t.co/igdTS2DaNp pic.twitter.com/E8mB6PeDQW
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