The timeline for the return of funds to users remains unspecified. Haru Invest, the South Korean yield platform that declared bankruptcy, has expressed its intention to refund users’ assets, although it refrains from specifying a particular timeframe. In a Q&A session published on October 2nd, Hugo Lee, the CEO of Haru Invest, outlined the company’s strategy for a phased approach to asset recovery and distribution, spread across multiple rounds and contingent on the successful disposition of recovered assets. Lee emphasized: “However, it is important to note that we are currently unable to provide an accurate timeline for asset distribution due to ongoing legal proceedings, including rehabilitation efforts and cooperation with investigative agencies.” Furthermore, Lee assured investors that the reimbursement process would prioritize an equitable distribution to users rather than giving precedence to South Korean creditors. It’s worth noting that an estimated 60% of Haru Invest’s users are located outside of Korea, with the remaining 40% within the country. Haru Invest halted all deposits and withdrawals in June after discovering alleged fraudulent activities related to a consignment operator, B&S Holdings. Subsequently, the company filed for bankruptcy. The repercussions of Haru Invest’s collapse also affected the crypto lender Delio, which held $1 billion in Bitcoin and $200 million in Ether and suspended its own deposits and withdrawals in June. At the time of filing for bankruptcy, Haru Invest boasted over 80,000 members, distributed 9.8 million crypto-earn payouts, and had conducted a total of $2.27 billion in transactions. Haru had previously aimed for an annual yield of 12% on most of its earning products. In September 2022, the company secured $4 million in funding at a valuation of $284 million. In a September 25th update, Haru Invest disclosed that the company is currently being operated with minimal staff, rendering it impossible for users to access the website.
