In a surprising move, Haru Invest, a South Korean digital asset management platform, has announced the suspension of withdrawals from its platform, attributing the decision to an “issue with one of the service partners.” The unexpected decision has understandably caused concerns among its users. Haru Invest’s objective with the suspension is reportedly to protect consumer funds as the team works to establish a suitable “contingency plan.”
The platform, which boasts over 80,000 users across 140 countries and manages nearly $1 billion in assets, offers annual yields ranging from 12% to 25% on five cryptocurrencies, including Bitcoin, Ethereum, Tether, Circle, and XRP. The ongoing uncertainty has left users worrying, with some even considering legal action against Haru. An increasingly impatient user base has people expressing their concerns on Telegram and Twitter, with many believing there has not been enough clear information provided by the company.
In response to the recent events, Haru’s leadership has understandably been put under the spotlight. The company’s Seoul offices have been closed, as well as its LinkedIn account. However, Haru’s CEO, Hugo Hyungsoo Lee, has defended these actions, stating the office closure is a result of a work-from-home mandate to protect the assets within the office from potential fallout due to the withdrawal suspension.
Meanwhile, Eunkwang Joo, the co-founder and former chief technical officer of the platform, clarified that closing their social media account was done to follow “guidelines of the law firm in terms of legal response.” He added that the platform is dealing with an “internal situation” and there is no malicious “rug pull” attempt.
Upbit, a South Korean crypto exchange, has responded to the situation by restricting the withdrawal of its assets to Haru. As of now, the platform holds all user funds with its internal trading team and global asset management partners. Revenues are generated through various arbitrage and investment activities.
In times of uncertainty, concerns grow as transparency is lacking. The withdrawal suspension has left many users frustrated and seeking more information, with some even considering legal action against Haru. While the platform and its leadership maintain that the suspension is a temporary measure for the protection of its users’ funds, it remains to be seen how this situation unfolds. Users are eager for a resolution, and the company’s swift action and communication will be crucial in mitigating any fallout.
Source: Decrypt
