This means the Seoul Rehabilitation Court has publicized the official legal resolution of the insolvency of the South Korean digital assets platform Haru Invest. This backdrop can be seen by the fact that Haru Invest became bankrupt following a rug-pull heist that had the cryptocurrency provider losing $1 billion of the project.
The firm is accused of pressuring creditors to invest as much as 1.4 trillion in the company and freezing withdrawals. However, this activity created an unpleasant rug-pull situation, where investors could not leave the platform and could not unstake their tokens. This, in turn, led to panic and shock among most of the investors, most of whom had invested in their digital assets on the platform.
Haru Management Limited Declared Bankrupt Amid Scandal and Legal Proceedings
The local sources indicate that Haru Management Limited, the company that runs Haru Invest, had declared bankruptcy and filed for bankruptcy due to the attack. While attempting to make several investigations on the matter, the Seoul Rehabilitation Court, via the presiding Judge Lee Yeo-Jin, passed a cross to place Haru Management Limited bankrupt.
While symptoms may have been mainly established in Haru Management Limited in the British Virgin Islands, the South Korean domestic courts must handle the case. The court also agreed that the above amount was observed, and the firm could not repay the funds, which it considered bankrupt.
Seoul Rehabilitation Court is ready to verify and reveal Haru Management Limited’s conditions to a South Korean bankruptcy officer. Later, when a scandal related to Haru Invest’s operations was investigated, the chief executive officer, Hugo Hyungsoo Lee, and other corporate executives were arrested in February this year.
Creditors’ Meeting Scheduled Amid Growing Crypto Industry Concerns
It has also scheduled a meeting with the first creditors on 11 February 2025. During the meeting, the bankruptcy administrator will explain probable payment methods. Nevertheless, the investors must wait for the money to be paid back in full. Occasionally, they remain uncertain whether they will ever be repaid.
In recent times, there have been instances whereby some of the firms dealing in cryptocurrency have collapsed due to scandals. This has caused various types of crypto investors to start developing fears over the legitimacy of the crypto providers.
For instance, two larger crypto trading companies, Voyager and Celsius, filed for Chapter 11 in July 2022. In November of the same year, FTX applied for bankruptcy after misappropriating $8 billion of its customers’ funds. Nevertheless, their investors continued to be skeptical, even after the former FTX CEO SBF received 25 years behind bars sentencing.
Cryptography traders and researchers believe that the sphere requires improved regulations under today’s Haru Invest insolvency and other situations linked to exchanges. This will enhance investors’ safety and credibility in the ever-enhanced and highly volatile cryptocurrency market.
