Haru Invest To Shut Down Servers Amid Bankruptcy Proceedings

South Korean digital asset management platform Haru Invest announced it will temporarily shut down its servers in the coming weeks as it seeks to cut costs amid ongoing bankruptcy restructuring.

According to Chinese journalist Colin Wu, Haru Invest said maintaining its servers represents the company’s largest fixed operating expense. By preserving data but powering down servers, Haru aims to reduce expenses while determining next steps.

吴说获悉，Haru Invest 发布公告称，考虑到服务器维护成本是最大的固定成本，计划在未来几周内暂时关闭服务器，同时保存并存储所有相关数据，并在资产分配时决定是否重新启动服务器。此前，Haru Invest CEO Hugo Lee…

— 吴说区块链 (@wublockchain12) October 24, 2023

Haru Invest is currently in the process of establishing a database to document the financial credits and debts of its users. The company intends to distribute assets in phases after confirming the extent of losses and finalizing the asset allocation plan.

However, a specific timeline for this distribution has not been provided due to limited information regarding the exact amount of losses.

On June 13, 2023, Haru Invest announced a temporary suspension of new deposits and investment features in response to the challenges and uncertainties prevailing in the crypto market.

On June 20, 2023, Haru Invest’s CEO, Hugo Lee, extended a sincere apology for the concerns arising from the recent incident and acknowledged the need for prompt communication. He expressed his deepest regret for the inconvenience caused to investors and affirmed the company’s commitment to improving the situation.

Haru Invest suspended all deposits and withdrawals in June after discovering allegedly fraudulent activities surrounding a consignment operator, B&S Holdings. The firm subsequently filed for bankruptcy.

In a Q&A published on October 2, 2023, Hugo Lee said the bankrupt South Korean yield platform will return users’ assets, although no particular timeframe was given.

The Haru saga serves as another warning about the risks of offering eye-popping yields without transparency. As crypto lending reckonings continue, investors may turn toward more regulated options in the future.

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