‘1.4 Trillion Won Cryptocurrency Scam’ Haru Invest Evades Capital Erosion by Embezzling Digital Assets
The Haru Invest scam, which swindled 1.4 trillion won worth of digital assets from customers, appears to have been initiated to save the company from a state of capital erosion. When the 'algorithm trading' method, which promised annual returns of 12-16% with no risk, failed to deliver, the company even created fabricated profit verification posts to cover up the issue.
According to sources from the cryptocurrency industry and legal circles on the 11th, the Seoul Southern District Prosecutor's Office's Joint Investigation Team on Cryptocurrency Crimes indicted and detained A and B, co-representatives of Blockcrafters, which operated Haru Invest, on charges of fraud under the Specific Economic Crimes Aggravated Punishment Act. The Chief Operating Officer (COO), C, was indicted without detention on similar charges. They are accused of embezzling 1.39 trillion won worth of digital assets from 16,347 investors.
(omitted)
The attorneys representing the victims, Pureun “Ian” Hong and Hyeonsu “Elliot” Jin from Discent Law Firm, stated, 'It has become evident during the investigation that Haru Invest’s business deteriorated into a 'Ponzi scheme'. The truth must be revealed in court.'
