Haru Invest Executive Assaulted in Ongoing Fraud Charges Trial: Report

According to an exclusive report from South Korean news outlet Digital Asset, Hugo Hyungsoo Lee, the CEO of crypto asset management platform Haru Invest, was assaulted during an August 28 court trial.

Lee faces fraud charges under South Korea’s Act on the Aggravated Punishment of Specific Economic Crimes. He was indicted in February for the allegations but was released on bail in July.

Attacker Arrested

Digital Asset reported that the attack occurred in the Seoul Southern District Court, where Lee was seated at the defendant’s bench. The assailant, identified as a male named Kang, supposedly ran to the bench and stabbed the Haru Invest head several times in the neck with a hidden 5-cm-long knife.

The article also stated that after the deed, Lee fell on the courtroom floor, bleeding, as security rushed to apprehend Kang. Emergency services were seen arriving moments after the incident and transported the victim to a nearby hospital. His current condition remains unknown.

Kang, who is believed to be one of the people who lost funds from Lee’s purported embezzlement, is now under police investigation.

Executive Faces Fund Mismanagement Allegations

In February 2024, Seoul prosecutors arrested Lee and two other executives for allegedly mismanaging approximately $826 million in cryptocurrency belonging to around 16,000 Haru users.

South Korean news platform Yonhap News reported that Haru Invest allegedly entrusted most of its clients’ deposits to a single individual while falsely advertising that these funds were managed using “risk-free distributed investment techniques.” The platform attracted customers with promises of up to 12% yield through its Earn Plus product.

Following concerns raised by several clients, authorities commenced an investigation on Haru Invest and crypto lender Delio. In what seemed like an effort to hide any malicious activity on the platforms, both companies abruptly suspended withdrawals on June 14, 2023.

Days later, financial watchdogs, such as the South Korean Financial Services Commission (FSC), seized all assets belonging to Delio’s clientele and the company itself, including various cold wallets and ledgers.

South Korea Crypto Regulatory Stance

On July 19, South Korea’s new strict crypto regulations took effect, presenting real-time, round-the-clock monitoring of digital asset transactions. Led by the Financial Supervisory Service (FSS), the new rules are designed to ensure that virtual asset exchanges meet their legal obligations.

In an effort to improve the crypto regulatory landscape, the FSS collaborated with exchanges to develop the ‘Abnormal Transaction Monitoring Guidelines’ and support the setup of a regular surveillance system for suspicious or criminal-affiliated transactions.

Moreover, South Korea’s financial regulators are set to unveil new guidelines for virtual asset trading support, which they anticipate releasing soon.