Haru Invest exec assaulted in ongoing trial on fraud charges: report

According to an exclusive report by South Korean news channel Digital Asset, Hugo Hyungsoo Lee, CEO of crypto asset management platform Haru Invest, was assaulted during a court trial on August 28.

Lee faces fraud charges under South Korea’s Law on Aggravated Punishment of Specific Economic Crimes. He was indicted in February on the charges but was released on bail in July.

Attacker arrested

Digital Asset reported that the attack took place at the Seoul Southern District Court, where Lee was sitting on the dock. The assailant, identified as a man named Kang, allegedly ran into the bank and stabbed Haru Invest’s head several times in the neck with a 5cm-long hidden knife.

The article also said that after the act, Lee fell to the courtroom floor, bleeding, as security rushed to arrest Kang. Emergency services arrived moments after the incident and transported the victim to a nearby hospital. Its current status is unknown.

Kang, who is believed to be one of the people who lost funds due to Lee’s alleged embezzlement, is now under police investigation.

The executive faces accusations of mismanagement of the fund

In February 2024, Seoul prosecutors arrested Lee and two other executives for allegedly mismanaging approximately $826 million in cryptocurrency belonging to about 16,000 Haru users.

South Korean news platform Yonhap News reported that Haru Invest allegedly entrusted most of its clients’ deposits to a single person while falsely advertising that these funds were managed using “risk-free distributed investment techniques.” The platform lured customers with promises of up to 12% returns through its Earn Plus product.

Following concerns raised by several customers, authorities launched an investigation into Haru Invest and crypto lender Delio. In what appeared to be an effort to hide any malicious activity on the platforms, both companies abruptly suspended withdrawals on June 14, 2023.

Days later, financial watchdogs such as South Korea’s Financial Services Commission (FSC) seized all assets belonging to Delio’s clientele and the company itself, including several cold wallets and ledgers.

South Korea’s Crypto Regulatory Position

South Korea’s strict new crypto regulations went into effect on July 19, introducing 24-hour, real-time monitoring of digital asset transactions. Led by the Financial Supervisory Service (FSS), the new rules are designed to ensure that virtual asset exchanges comply with their legal obligations.

In an effort to improve the crypto regulatory landscape, the FSS collaborated with exchanges to develop the “Abnormal Transaction Monitoring Guidelines” and support the setting up of a regular monitoring system for suspicious transactions or affiliated with crimes.

In addition, South Korea’s financial regulators are set to unveil new guidelines for support for virtual asset trading, which they expect to publish soon.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!