The failed CeFi firm Haru Invest hinted at asset recovery

Bankrupt South Korean product platform Haru Invest has said it will return users' assets, although it did not give a specific timeframe.

At a question-and-answer session on October 2, Haru Investments CEO Hugo Li said the company plans to “phased asset acquisition and distribution” in several rounds, eliminating repossessed assets. Lee wrote:

“However, legal procedures including recovery and cooperation with investigation agencies are still ongoing. Basically, we could not distribute the assets by ourselves. Therefore, it is impossible to predict and tell the schedule of asset distribution at this time.”

During the session, he assured that investors will get their money back through a fair distribution system rather than prioritizing creditors in South Korea. 60% of Haru Invest's users are overseas, with 40% in Korea.

In June, Haru Invest suspended all deposits and withdrawals after discovering fraudulent activities around consignment operator B&S Holdings. The company subsequently filed for bankruptcy. Haru's investment failure also led to a contagion between crypto lender Delio, which held $1 billion in Bitcoin (BTC) and $200 million in Ether (ETH), which suspended deposits and withdrawals in June.

At the time of record, Haru Invest claimed more than 80,000 members, 9.8 million crypto-earn payments and $2.27 billion in total transactions. Haru previously projected a 12 percent annual yield on most of its acquisitions. Last September, it raised $4 million at a cost of $284 million.

In an update on September 25, Haru Invest said that the company is currently being maintained by a “minimum operational staff.” As a result, the website login will no longer work.

An important update from Haru Invest. pic.twitter.com/E8mB6PeDQW

— Haru Invest (@haruinvest) June 13, 2023

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