Haru Invest CEO Breaks Silence, Reveals Loss Linked to FTX Collapse
CryptoNewsTerminal Staff17 May, 2024
Haru Invest CEO Breaks Silence, Reveals Loss Linked to FTX Collapse
Haru Invest's Loss Exposed Digital Asset reports that Haru Invest, a cryptocurrency deposit platform, has disclosed a significant loss of 400 billion won (approximately $303 million) due to the collapse of FTX, the cryptocurrency exchange, in November 2022. The custodian of Haru Invest's clients' cryptocurrency, B&S, reportedly suffered the loss. Haru Invest's management faced legal charges in June 2023 for allegedly embezzling 1.4 trillion won ($1.06 billion) in cryptocurrency from investors. CEO Lee Hyung-soo was arrested and indicted in February. CEO's Statement This is the first public revelation of Haru Invest's losses resulting from the B&S incident. CEO Lee Hyung-soo commented, "The loss in Korean won may vary depending on the estimated prices of Bitcoin and Ethereum. In June 2023, when the issue was discovered, BTC was worth 35 million won, while it is now 90 million won." Ongoing Investigation Haru Invest's challenges continue as the legal proceedings and investigation into the alleged embezzlement charges persist. The platform's financial stability and the fate of its clients' assets remain uncertain as the situation unfolds.
