Haru Invest suspected of secretly transferring client funds to FTX

A researcher under the pseudonym Ergo noted that Haru Invest’s balance sheet has never been particularly high, and the firm’s two largest transactions involve FTX

15.06.2023 - 08:15

621

2 min

What’s new? South Korean digital asset management platform Haru Invest is suspected of secretly transferring client funds to the bankrupt FTX exchange. CryptoQuant CEO Ki Young reported on Twitter, citing data from an independent researcher under the pseudonym Ergo of The OXT Research. The latter noted that Haru Invest’s balance sheet has never been particularly high, with the two largest transactions tied to FTX and recorded in the summer of 2022. According to Ergo, these transactions are the largest outgoing transfers from Haru Invest.

Haru Invest used FTX, as reported by OXT Research. If this is true, they remained silent about it to customers throughout the year after FTX's collapse. Sigh. https://t.co/i0eqcg4A5X — Ki Young Ju (@ki_young_ju) June 14, 2023

What is going on with Haru Invest? On June 13, the platform froze deposits and withdrawals, citing problems with an unnamed partner. Later, the Haru Invest team stated that the company’s “‘Rug pull controversy’ mentioned in some articles is completely untrue.”

On June 14, it became known that the unnamed partner of Haru Invest was B&S Holdings (formerly known as Aventus). This firm had fraudulently submitted management reports containing false information, thus deceiving the company and its users. Haru Invest filed a criminal complaint against B&S Holdings and plans to file a civil lawsuit.

On the same day, South Korean crypto bank Delio suspended withdrawals amid heightened market volatility related to Haru Invest’s actions. In response, local exchange Upbit said it was limiting cryptocurrency withdrawals for the crypto bank “as part of investor protection measures.”

Author: