Haru Invest, a South Korean firm known for its digital asset savings products offering double-digit yields, has temporarily suspended withdrawals and deposits, attributing the decision to complications with its service partners. The company announced the suspension in a blog post, expressing its commitment to safeguarding its users’ assets while investigations are underway.
Haru Invest has refrained from disclosing the identity of the specific partner responsible for the disruption in its operations. Notably, the firm’s LinkedIn page has been removed, though its Twitter profile remains active.
Reports from local media indicate that Haru Invest’s office in Seoul appears empty as employees are said to be working remotely for their own safety, as mentioned by CEO Hyung-soo ‘Hugo’ Lee in a statement.
Eunkwang Joo, co-founder and former CTO of Haru Invest, shared insights on the situation through a series of tweets. Joo suggested that the company might be dealing with an internal matter but dismissed the possibility of a deliberate malicious act, such as a “rug pull,” where funds are suddenly drained from a project.
Joo further speculated that the closure of social media accounts could be a response to an undisclosed legal situation, possibly related to regulatory actions in South Korea.
While details surrounding Haru Invest’s predicament remain scarce, industry observers and investors are eagerly awaiting further updates. The firm’s promise of attractive yields on its digital asset savings products had attracted significant attention, making the sudden suspension of withdrawals and deposits a cause for concern among its user base.
Haru Invest had previously invested $18 million in Pow.re, a Montreal-based miner, indicating its involvement in the cryptocurrency mining sector. However, it is unclear at this point whether this investment has any connection to the current situation faced by the company.
As investigations continue and the firm explores contingency plans to resolve the issue, Haru Invest’s customers are left with uncertain prospects regarding the resumption of normal operations.
The outcome of the ongoing internal inquiry and any subsequent regulatory actions could have far-reaching implications for both the company and the broader digital asset industry in South Korea.
