Three executives at yield platform Haru Invest were arrested by South Korean authorities. The arrests were made by the Joint Investigation Team of Virtual Asset Crimes of the Seoul Southern District Prosecutors’ Office. The executives, including the CEO, were suspected of stealing 1.1 trillion won ($828 million) worth of crypto from around 16,000 users, according to Yonhap News.
Last year in June, Haru Invest paused withdrawals and deposits for its customers, claiming that it had issues with partners. It also laid off around 100 employees. The platform promised high yields for users, however, Yonhap News reported that the platform is suspected of to be a “rug pull,” where founders of crypto projects disappear with customers’ funds.
The prosecutors have accused Haru executives of illegally taking money from their customers from March 2020 to June 2023. While doing so, they claimed to be using investment methods that were supposedly safe and varied.
The arrests of these executives are part of South Korea’s ongoing efforts to stop illegal activities in the crypto industry. The country has recently made stricter rules for crypto exchanges and is working to keep a closer eye on the industry as a whole.