Yield Platform Haru Invest Targets Consignment Operator in Criminal Complaint

An escalating legal battle involving Haru Invest, a yield platform in South Korea, and a consignment operator B&S Holdings, took a dramatic turn today. 

Haru Invest unveiled its intentions to initiate a lawsuit against B&S Holdings via a blog post.

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Haru Invest is accusing B&S Holdings of providing deceitful management reports, which it alleges contained "false information" that misled both the company and its users.

The company revealed that apart from seeking criminal prosecution, the firm is considering civil litigation to safeguard its users. The yield platform also disclosed its ongoing discussions with B&S Holdings concerning the matter.

Haru Invest concluded its public statement by expressing its regret over the issue, declaring:

Once again, we apologize for causing concerns and inconveniences to our investors and customers. We will continue to work on the issue in a faithful manner, as the company’s top priority is to protect our users.

It is worth noting that, on June 14th, the company halted operations, including deposits and withdrawals, citing an internal investigation over its contract operator.

In the wake of Haru Invest's issues, there appears to be a ripple effect on other platforms within South Korea. On June 14th, Delio, a South Korean virtual asset manager and lending platform, announced its decision to freeze withdrawals on its platform. This decision stems from escalating market volatility and mounting confusion among regional investors triggered by the ongoing situation at Haru Invest.

The legal dispute underscores the importance of transparency and integrity in the ever-evolving world of digital finance, where investor trust is paramount. As the saga unfolds, Haru Invest's commitment to protecting its users is clear, despite the ripple effects causing concern in the wider South Korean market.