Crypto yield platform Haru suspends transfers after investigation

On June 13, South Korean yield platform Haru Invest announced that it would be suspending deposits and withdrawals effective immediately. “First of all, the company sincerely apologizes that its latest announcement has caused concerns to our valued investors and customers,” Haru said, claiming that “certain information provided by a consignment operator was suspected to be false” during an “internal inspection process,” thus leading to the transfer halt.

“After careful investigation, we concluded that immediate suspension of transactions was necessary to protect our investors. We are currently engaging in a fact-finding process against the operator in question and plan to take necessary measures.”

Haru Invest also claims that it did not experience a “rug pull” and is fully working to “protect our investors.” Earlier in the day, the firm said it came “across a certain issue with one of the service partners we have worked with” and has been investigating the issue while seeking a contingency plan. Immediately afterward, local news outlets in South Korea claimed that Haru employees were working from home and offices had closed. Specifically, Maeil Business alleged:

“Investors failed to get their deposits and are angry. Since it is an unreported business operator, there is no way to get help from the financial authorities.”

In response, developers commented: “We regret that several media articles on this topic contained information that [is] factually inaccurate.”

According to its website, Haru Invest has over 80,000 members, 9.8 million crypto-earn payouts and $2.27 billion in total transactions. The firm targets an annual yield of 12% on most of its earn products. In September, it raised $4 million on a $284 million valuation.