Crackdown on Crypto Fraud
The Seoul Southern District Prosecutors’ Office’s Joint Investigation Team has made significant progress in the Haru Invest case, arresting three high-ranking members of the Singapore-based cryptocurrency firm. These arrests are part of a broader effort to tackle what was an alleged fraud of approximately 1.1 trillion won ($828 million) taken from customers between March 2020 and June 2023.
The Fall of a Crypto Titan
Haru Invest, once a beacon for yield-bearing crypto services, is now at the center of a major scandal. The platform, which promised risk-free investments and high returns, has been accused of abruptly halting withdrawals and engaging in what is feared to be a ‘rug pull’—a term in the crypto world for when a service provider takes the money and runs without delivering promised returns.
Government Intervention and Oversight
In the wake of the Haru Invest debacle, South Korea’s government has intensified its focus on the crypto industry, pushing for greater oversight and regulation. The country’s financial watchdog has proposed new rules aimed at protecting cryptocurrency users, while federal prosecutors actively pursue those accused of engaging in fraudulent activities within the space.
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