South Korean Crypto Yield Platform Haru Invest Pauses Withdrawals and Deposits

The firm blamed the pause on a “certain issue” with one of its service partners, and said it is working on a contingency plan, according to a blog update.

AccessTimeIconJun 13, 2023 at 7:08 a.m. UTC

Haru Invest, a South Korean firm which promised double-digit yields on its digital asset savings products, has paused withdrawals and deposits, citing issues with service partners.

“We are now further investigating the issue with them and seeking the contingency plan to rectify the situation,” Haru Invest said in a blog post. “For the purpose of protecting our users’ assets under our custody, we have come to make a tough decision that any deposit and withdrawal requests will be suspended until further notice.”

Haru Invest declined to name the specific partner that is impacting its operations. The firm’s Linkedin Page has been deleted, but its Twitter profile is still functioning.

Upbit, a South Korea-based exchange, said it would be limiting Haru Invest’s ability to withdraw assets on its platform, according to CoinDesk Korea.

Local media report that Haru Invest’s office in Seoul is empty because employees are working from home for their own safety, according to a statement from its CEO Hyung-soo ‘Hugo’ Lee.

Eunkwang Joo, Haru Invest’s co-founder and former CTO, said in a tweet thread that the company may have had an “internal situation,” but its unlikely a malicious rug pull.

Joo said that the closing of social media accounts was likely a legal response to some unknown situation. This might be a response to moves from South Korea’s regulator. Previously, Haru had invested $18 million into Montreal-headquartered miner

A request for comment sent to Haru Invest’s PR agency and listed communications manager was not immediately returned.

Edited by Parikshit Mishra.


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