PANews reported on November 20 that South Korean virtual asset management platform Haru Invest was declared bankrupt by the Seoul Rehabilitation Court today for allegedly "pumping up and running away" and causing virtual currency losses of about 1.4 trillion won (about 10.5 billion US dollars). It is reported that the company had previously promised to provide high returns by storing assets such as Bitcoin, Ethereum and USDT, but suddenly stopped withdrawals in June 2022, causing huge losses to more than 16,000 investors. Currently, the operator of Haru Invest is also undergoing a criminal trial related to cryptocurrency fraud in the Southern District Court of Seoul.
The court ruled that although Haru Invest's operating company was registered in the British Virgin Islands, it had a physical location in South Korea, so it had jurisdiction and declared the company bankrupt due to insolvency. The court plans to hold the first creditors' meeting on February 11, 2025, to clear the company's assets through a bankruptcy administrator and initiate distribution procedures.
