Haru Invest, a South Korean cryptocurrency platform, has announced plans to suspend its server operations just months after freezing customer withdrawals in June 2023.
In an announcement made on October 16, Haru Invest CEO Hugo Lee revealed the company’s intentions to shut down its servers as a cost-cutting measure. According to Lee, server maintenance has been one of the firm’s largest ongoing expenses.
Lee explained that the decision to shut down the servers was driven by the need to reduce Haru’s operating costs so that more assets could be reserved for future distribution to affected users. However, he did not provide specifics on when users might regain access to their funds.
The plan to shut down the servers has sparked criticism within Haru’s community, with many arguing that maintenance costs are likely negligible. As one Telegram user expressed, “Server costs nothing.”
Lee’s announcement also comes after his court appearance in early September 2023, where he addressed Haru’s application for corporate rehabilitation. He stated the company was cooperating with investigating agencies but did not offer a timeline for user reimbursement.
However, some users have accused Haru of orchestrating an intentional exit scam, a charge that the company has denied.
Haru Invest had halted withdrawals on June 13 over claims of suspected fraudulent activity by an external contractor. The platform blamed this misconduct on B&S Holdings (formerly known as Aventus). Subsequently, the company closed its offices and laid off employees, leaving customers unable to access their funds on the platform.
Haru Invest is reportedly facing a class-action lawsuit alongside fellow Korean platform Delio, with plaintiffs alleging fraud by both companies.
Just like Haru, Delio, a virtual asset managing platform, also announced the suspension of withdrawals on its platforms on June 14, 2023. The platform attributed the decision to increased market volatility and investor confusion, partly resulting from the challenges faced by Haru Invest.
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