CEO of Haru Invest allegedly attacked during fraud trial in South Korea

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

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

While guards in the courtroom 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, who was arrested at the scene, is one of Haru Invest's victims and is now under investigation.

Problems at Haru Invest

This incident exacerbates the growing problems surrounding Haru Invest.

Last year, the platform suspended user withdrawals, citing false information from an unnamed shipping company. Concerns escalated when the company closed its Seoul office and deleted its YouTube and LinkedIn profiles, sparking rumors of fraud and a possible scam, which the company vehemently denied.

Nevertheless, 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 around $826 million from 16,000 users. The executives are accused of misleadingly promoting a “risk-free diversified investment strategy” while investing most of the customer deposits.

Meanwhile, Haru's problems have also affected another South Korean crypto lending platform, Delio, which is currently under investigation by authorities.

South Korea’s crypto relations

South Korea is one of the countries with the highest cryptocurrency adoption in the world, driven primarily by retail investors. Institutional and foreign investors face restrictions that limit their participation.

Chainalysis reported that South Korea received over $111.82 billion worth of crypto assets from July 2022 to June 2023, 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 addressing challenges within the crypto industry.