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<p class="is-style-lead">South Korean authorities are making headway in the Haru case from 2023, where the yield-bearing service froze withdrawals after accepting nearly $1 billion from customers.</p>
<p>The Joint Investigation Team of Virtual Asset Crimes in Seoul’s Southern District Prosecutors’ Office has arrested three individuals believed to be executives of Singapore-based crypto firm Haru Invest.</p>
<p>According to local media outlet <a href="https://www.yna.co.kr/view/AKR20240206070100004" target="_blank" rel="noopener noreferrer nofollow">Yonhap</a> News, one of the detained suspects is the company’s CEO, Hugo Lee. Lee had <a href="https://x.com/haruinvest/status/1754315868010688687?s=20" target="_blank" rel="noopener noreferrer nofollow">signed</a> a message posted on X a day before the arrest notice, claiming no updates to share with the public.&nbsp;</p>
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   <p lang="en" dir="ltr">Dear Haru Invest members, please check our announcement. <a href="https://t.co/EMToEY8Mr8" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/EMToEY8Mr8</a></p>— Haru Invest (@haruinvest) <a href="https://twitter.com/haruinvest/status/1754315868010688687?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">February 5, 2024</a>
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<p>South Korean law enforcement arrests are part of an ongoing investigation into 1.1 trillion won, or roughly $828 million, allegedly stolen by Lee and other executives between March 2020 and June 2023.</p>
<p>Haru Invest touted itself as a risk-free crypto platform offering double-digit yields to depositors. Last year, Haru disclosed supposed issues with its financial partners and abruptly suspended withdrawals.</p>
<p>Users were also barred from depositing more digital assets in the service, and Haru fired some 100 employees in a shakedown that promised to lead the company out of turbulent times.&nbsp;</p>
<p>You might also like: <a href="https://crypto.news/south-korea-mulls-over-crypto-tax-abolition-amid-financial-investment-tax-repeal/" rel="noopener noreferrer nofollow"> South Korea mulls over crypto tax abolition amid financial investment tax repeal </a></p>
<h2 class="wp-block-heading" id="south-korea-cracks-down-on-crypto-crime">South Korea cracks down on crypto crime</h2>
<p>The latest update from South Korean authorities suggests that Lee and other top-ranking members at the firm masterminded an elaborate scheme to defraud customers of their virtual currencies without delivering on the yield.</p>
<p>In crypto, this is commonly known as a rug pull and speaks to projects absconding with funds after marketing a service. Haru <a href="https://crypto.news/singapore-based-haru-invest-comments-on-rug-pull-rumors/" target="_blank" rel="noopener noreferrer nofollow">denied</a> the allegations then and claimed its high-yield crypto investment platform had packed up shop due to external factors.</p>
<p>South Korea’s government seems to be paying more attention to blockchain and cryptocurrencies, a burgeoning industry that needs oversight and regulations. Authorities have <a href="https://crypto.news/south-korean-regulators-call-for-public-reports-on-unlicensed-crypto-exchanges/" target="_blank" rel="noopener noreferrer nofollow">called</a> for public reports on unlicensed service providers while mandating crypto <a href="https://crypto.news/south-korea-to-mandate-crypto-disclosure-for-5800-officials-in-2024/" target="_blank" rel="noopener noreferrer nofollow">disclosures</a> from government officials.</p>
<p>The country’s top financial watchdog also <a href="https://crypto.news/south-koreas-fsc-proposes-rules-to-safeguard-crypto-users/" target="_blank" rel="noopener noreferrer nofollow">proposed</a> rules to safeguard crypto users, and federal prosecutors are going after defaulters. One of these high-profile cases involves Terraform Labs and its founder, Do Kwon, both tied to a $60 billion ecosystem failure reverberating throughout crypto’s global economy.</p>
<p>Read more: <a href="https://crypto.news/terraform-labs-ex-financial-officer-extradited-back-to-south-korea/" rel="noopener noreferrer nofollow"> Terraform Labs ex-financial officer extradited back to South Korea </a></p>

Haru Invest CEO, two others arrested in South Korea for $828m crypto fraud

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