In the aftermath of suspending withdrawals in June 2023, Haru Invest is yet to outline a schedule for repaying its clients. The troubled cryptocurrency platform is contemplating shutting down its server a few months after putting a hold on withdrawals in June 2023. Haru Invest is considering this move to curtail the maintenance costs associated with its services, as announced by the company’s CEO, Hugo Lee, on Oct. 16. Lee emphasized that the server maintenance cost constitutes the “largest percentage of fixed costs” at Haru Invest and is currently a top priority for the company.
Lee stated in the announcement, “We plan to suspend the service in a few weeks, backing up all member information,” adding that the firm is “yet to have a definite plan” for the server suspension. This decision aligns with Haru Invest’s commitment to actively devise strategies aimed at reducing all costs associated with operating its services, according to the CEO. Lee outlined some of the current fixed expenditures, including the upkeep of Haru Invest services, office space costs, and communication expenses with members.
The CEO affirmed that Haru Invest aims to further decrease its operating expenditures to preserve as much of the company’s assets as possible. He also assured that these assets would be added to those slated for distribution to users who have been unable to access their funds on the platform since June. However, news of the impending suspension has stirred discontent within the Haru Invest community, with users arguing that server maintenance is unlikely to incur exorbitant costs for the firm.
On Haru Invest’s Telegram channel, one disgruntled user commented, “Server costs cost nothing,” and another sarcastically stated, “Servers are gone soon guys, huge costs, 200 USD a month.” Online sources suggest that maintenance costs for running a server for a small to medium business typically range between $35 to $500 per month.
Lee’s announcement about the upcoming server suspension follows Haru Invest’s decision to halt deposits and withdrawals on June 13, 2023. Subsequently, the South Korean firm closed its offices and laid off dozens of employees, as reported by local news agencies. Haru Invest attributed the issues on its platform to the fraudulent activity of consignment operator B&S Holdings, formerly known as Aventus. Although some investors accused the firm of orchestrating a rug pull, Haru Invest vehemently denied these allegations.
In September, Lee appeared in court to address concerns related to the recent corporate rehabilitation application. He stated that Haru Invest was cooperating with investigating agencies and striving to establish a timeline for recovering users’ assets. As of early October, Haru Invest has not provided any timeline for the funds’ recovery. The firm is reportedly facing a class-action lawsuit alongside the major South Korean crypto platform Delio, with investors accusing both companies of fraud.