Haru Invest CEO reportedly attacked during fraud trial in South Korea

Haru Invest CEO Hugo Hyungsoo Lee was attacked during his ongoing fraud trial at the Seoul Southern District Court, local media outlet Digital Asset reported on Aug. 28.

According to the report, a man identified as “Kang” stabbed Lee multiple times in the neck with a concealed 5 cm knife.

While courtroom guards quickly subdued Kang, Lee was reportedly seen bleeding on the floor. He was taken to a nearby hospital, and his current condition remains unclear.

Meanwhile, authorities have confirmed that Kang, arrested at the scene, is one of Haru Invest’s victims and is now under investigation.

Haru Invest issues

This incident adds to the growing troubles surrounding Haru Invest.

Last year, the platform suspended user withdrawals, blaming false information from an unnamed consignment operator. Concerns escalated when the company shut its Seoul office and deleted its YouTube and LinkedIn profiles, sparking rumors of fraud and a potential rug pull, which the company vehemently denied.

Despite this, Haru’s failure to reopen withdrawals or provide a clear explanation has fueled further speculation and regulatory scrutiny.

In February 2024, South Korean prosecutors arrested three Haru executives, including the co-CEOs, for allegedly embezzling approximately $826 million from 16,000 users. The executives are accused of misleadingly promoting a “risk-free diversified investment strategy” while investing most customer deposits.

Meanwhile, Haru’s issues have also affected another South Korean crypto lending platform, Delio, which authorities are now investigating.

South Korea’s crypto relationship

South Korea ranks among the top countries globally in crypto adoption, driven primarily by retail investors. Institutional and foreign investors face restrictions, limiting their participation.

Chainalysis reported that from July 2022 to June 2023, South Korea received over $111.82 billion in crypto value. This is the highest amount in East Asia, surpassing the region’s largest economies in Japan and China.

In response, South Korea has taken a proactive approach to crypto regulation. The country aims to set high standards to protect industry users while positioning itself as a leader in managing the challenges within the crypto industry.