Bankrupt CeFi firm Haru Invest hints at asset recovery

Bankrupt South Korean earnings platform Haru Invest said it would return users’ assets but gave no specific timetable.

in Q&A Meeting On October 2, Haru Invest CEO Hugo Lee said that the company plans to conduct “phased asset recovery and distribution” in several rounds through the disposal of recovered assets. Li wrote:

“However, it should be noted that since the legal process, including the aftermath and cooperation with investigative agencies, is still ongoing, we are basically unable to distribute the assets ourselves. Therefore, it is currently impossible to predict and tell you the asset distribution schedule.”

During the meeting, Lee also assured that investors would get their money back through a fair distribution system, without prioritizing South Korea’s creditors.one estimated 60% of Haru Invest users are located overseas, compared with 40% in South Korea.

In June, Haru Invest suspended all deposits and withdrawals after discovering alleged fraudulent activity at consignment operator B&S Holdings. The company later filed for bankruptcy. Haru Invest’s collapse also sent ripples through cryptocurrency lending firm Delio, which held $1 billion in Bitcoin (BTC) and $200 million in Ethereum (ETH), when it also suspended deposits and withdrawals in June .

As of the filing, Haru Invest claimed to have more than 80,000 members, 9.8 million cryptocurrency revenue disbursements and $2.27 billion in total transaction volume. Haru previously targeted an annual return of 12% on most profitable products. Last September, the company raised $4 million at a valuation of $284 million.

Haru Invest said in an update on September 25 that the company is currently undergoing maintenance “with a minimum number of operating personnel.” Therefore, its website login is no longer valid.