On Monday, South Korean prosecutors announced that three executives of crypto yield platform Haru Invest, including its two co-CEOs, have been arrested and detained.
The prosecution has accused them of embezzling about 1.1 trillion Korean won ($826 million) worth of cryptocurrencies from around 16,000 users.
According to an official from the Seoul Southern District Prosecutor’s Office, Haru Invest allegedly invested majority of its client deposits through one individual, despite claiming to use “risk-free distributed investment techniques.”
Haru Invest also offered a high yield of up to 12% through its Earn Plus product to its users. The investigation began after both Haru Invest and crypto lender Delio suddenly halted withdrawals on June 14, 2023.
This sparked suspicions from local authorities, who had been investigating both companies. According to Delio, the suspension was a result of the halt of deposits and withdrawals at Haru Invest, with whom they had previously collaborated.