• Haru Invest, a South Korean crypto yield platform, has fired over 100 employees.
• The decision was made to prevent further damages from being incurred by the company.
• The company is currently pursuing legal action against an external management company for fraud and embezzlement.
Haru Invest Sacks 100+ Employees Following Withdrawal Halt
Haru Invest, a struggling South Korean crypto yield platform, has reportedly terminated contracts for over 100 employees on June 23. In a statement released on Thursday, the company said that the decision was made “to prevent further damages that are likely to be incurred.”
Issues with Service Partners
The termination of contracts comes after Haru paused withdrawals and deposits on June 13 due to issues with service partners. An internal inspection process revealed that certain information provided by a consignment operator was “suspected to be false,” according to the company. It was later disclosed that there was an issue with the external management company B&S Holdings .
Legal Action in Progress
CEO Lee Hyung-soo said during a conference that it is difficult to operate normally due to current situation. Haru announced legal action against B&S Holdings on June 16 for fraud, embezzlement, and other allegations. On June 22, they stated that they were unable to share additional information but were “prioritizing the recovery of damages made and the confirmation of facts by taking legal action against B&S Holdings.”
Legal Issues Faced By Company
The CEO also mentioned in his June 20 letter that a number of users have taken legal action against their company. They plan to cooperate fully with authorities so as ensure quick identification of facts and representation based on findings.
Haru Invest’s decision to terminate contracts for over 100 employees came as result of current situation faced by them due to issues with service partners and external management companies as well as legal action taken against them by some users. They are currently prioritizing recovery of damages made and confirmation of facts through legal action taken against B&S Holdings while cooperating fully with authorities regarding any other legal issues faced by them.