In an unexpected move by South Korean firm Haru Invest, withdrawals and deposits have been temporarily halted, leaving investors on edge. The company, which has been known for its promises of double-digit yields on digital asset savings products, cited issues with service partners as the reason behind this decision.
In a recent blog post, Haru Invest mentioned that they were investigating the issue with their service partner and working on a contingency plan to rectify the situation. However, to ensure the protection of users’ assets in their custody, they had no choice but to suspend deposit and withdrawal requests until further notice. The company did not disclose the identity of the service partner in question.
This turn of events has led to speculations about the future of Haru Invest. The firm’s LinkedIn page has been deleted, although its Twitter profile remains active. South Korea’s Upbit exchange has announced that it will limit Haru Invest’s ability to withdraw assets on its platform, as reported by CoinDesk Korea.
While their office in Seoul appears to be empty, the company’s CEO, Hyung-soo ‘Hugo’ Lee, explained that employees are working from home and taking safety precautions. Eunkwang Joo, co-founder and former CTO of Haru Invest, commented in a tweet thread that an “internal situation” could have caused the shutdown, rather than a malicious rug pull.
Joo also suggested that the closing of the company’s social media accounts might be a legally-justified response to some unknown situation, potentially stemming from actions taken by South Korea’s regulator. Prior to this development, Haru Invest had invested $18 million into Montreal-based miner Pow.re.
As the events unfold, Haru Invest’s public relations agency and listed communications manager have not yet provided any comments. It remains to be seen what impact this sudden decision may have on its users and the broader digital asset market.
On one hand, the temporary halt in withdrawals and deposits could serve as a necessary step to secure the investments of its users, highlighting Haru Invest’s commitment to protecting its clients’ assets. On the other hand, the situation has raised some legitimate concerns about the company’s future and the stability of their investments. The market, investors, and enthusiasts will be keeping a keen eye on the developments surrounding Haru Invest and how it navigates through this challenging period.
Source: Coindesk
