In a surprising turn of events, Haru Invest, a struggling South Korean crypto yield platform, has reportedly terminated contracts for over 100 employees. The company announced on Thursday that they would be “minimizing the operations of Haru Invest and its affiliated companies to prevent further damages that are likely to be incurred.” This decision comes from the operator of the crypto management service Haru and the parent company Block Crafters. The contracts are set to expire on June 23.
Affected employees were informed of the decision during a video conference the same day as the contract termination. The exact number of employees impacted by this decision remains uncertain, but CoinDesk Korea reported it to be over 100 people.
Following the recent issues that the company has faced, specifically the withdrawal pause, Haru Invest closed its offices and sent the workers to work from home, while the officials vanished. The company stated that their executive team is committed to addressing this situation and providing legal responses, as well as administrative and legal support to Haru team members when necessary.
During the conference to discuss the contract terminations, CEO Lee Hyung-soo mentioned that “it is difficult to operate normally due to the recent situation.” On June 13, Haru paused withdrawals and deposits, citing problems with service partners as the reason. An internal inspection process revealed that certain information provided by a consignment operator was “suspected to be false.” On June 14, it was disclosed that there was an issue with the external management company B&S Holdings, leading Haru to announce legal action against it on June 16.
In a June 22 post, Haru Invest mentioned that while they are unable to share additional information, the company is “prioritizing the recovery of damages made and the confirmation of facts by taking legal action against B&S Holdings.” In consequence, the company has faced legal issues itself. CEO Lee stated, “We understand that a number of users have taken legal action against our company. We plan to cooperate fully with the authorities to ensure that the facts are quickly and accurately identified and that our position is represented based on the findings.”
Haru co-founder and former CTO Eunkwang Joo opined that although there was an “internal situation,” this is not a case of rug pull. With legal action in progress and the future of Haru Invest uncertain, the crypto community will closely follow the developments surrounding this embattled platform.
Source: Cryptonews
