'No Risk, Principal Guaranteed' 1 Trillion Won Cryptocurrency Fraud: Haru Invest Executives Arrested and Indicted

3 People Detained, 1 Released Without Detention
Over 16,000 Victims

The management of Haru Invest, a virtual asset deposit service company that deceived customers by claiming "if you deposit virtual assets, we will return the principal and profits like a bank," received coins worth about 1.4 trillion won and then suspended withdrawals, has been indicted while in custody.

The Seoul Southern District Prosecutors' Office Joint Investigation Team on Virtual Asset Crimes (Chief Prosecutor Lee Jeong-ryeol) announced on the 22nd that they have indicted the co-CEOs of Haru Invest's operating company, Mr. A (44) and Mr. B (40), and the business general manager Mr. C (40) on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (fraud), while the company's chief operating officer Mr. D (38) was indicted without detention.

Joint Investigation Team for Virtual Asset Crimes. Photo by Jinhyung Kang aymsdream@

According to the prosecution, from March 2020 to June last year, they are accused of deceiving customers by promising that deposits in Haru Invest would guarantee the principal through risk-free management and provide the highest returns in the industry, thereby embezzling coins worth about 1.4 trillion won. Mr. D is also charged with embezzlement for arbitrarily using 368.43 million won of company funds from July 2021 to June last year.

The prosecution found that Haru Invest attracted coins from 16,347 people by promoting itself as operating stably regardless of coin price fluctuations through "risk-free arbitrage" and "diversified investment." Among the victims, 5,034 were Korean and 11,313 were foreigners.

Contrary to the promotional claims that "if you deposit coins, you will receive up to 15% annual returns like a bank and the principal is guaranteed," the actual operation was judged to have been a reckless "all-in" investment aiming for high returns.

Haru Invest had been in a state of complete capital erosion since 2019, with very poor financial conditions, and only one or two specialized personnel were actually responsible for coin management. It was also found that they lacked even a basic accounting system to calculate profit and loss based on management results.

A prosecution official said, "We have discussed victim and defendant lawyers and compensation plans, and we will actively cooperate so that materials secured in future investigations can be used in rehabilitation procedures and other processes."