Haru Invest Faces Challenge In Asset Recovery, Considers Compensation Plans
Key Points:
- Haru Invest faces challenges in recovering assets from B&S Holdings, considering internal assets for compensation.
- Operations suspended, access restricted, and contracts terminated to protect customer assets.
- The database is being developed to identify user claims, salable assets list prepared, and asset distribution planned in stages.
Haru Invest, a South Korean digital asset management platform, issued an announcement saying that since the specific scale of recoverable assets held by B&S Holdings has not yet been fully determined, it is difficult to recover at present, so it is considering using the company’s internal assets for compensation.
Assets held by B&S will take longer to recover. To this end, Haru Invest is collating the database of claims and liabilities and reviewing the asset allocation plan. At the same time, Haru Invest said a compensation plan needs to be developed for each product.
Currently, after suspending deposit and withdrawal services, the team has suspended all operations, restricted access to company assets and accounts, and terminated the contracts of all employees to prevent damage and loss related to assets and data held by B&S, And minimize operating costs to protect the loss of customer assets. In addition, since the amount of client assets is determined based on a specific point in time in the database after the suspension of deposits and withdrawals last month, the team will inform users in advance if there are system errors or additional transactions, such as earning profits, and future payments may Will not be included in the customer asset database.
Haru Invest previously released an update on its official website stating that the company is developing a list of potentially salable company assets, with the goal of minimizing the loss of value when selling company assets, and is considering a phased sale company assets. In addition, Haru said that it is currently building a database to identify users’ claims and debts, and plans to distribute assets in stages in a timely manner once the loss amount is confirmed and the asset distribution plan is determined. The specific allocation time has not yet been determined.
On June 13, Haru Invest, a prominent investment firm, stated in an announcement that the platform encountered problems with its service partners.
Haru Invest also released an update regarding the ongoing investigation into B&S Holdings and its efforts to recover assets. The company has been fully cooperating with investigative authorities, although no specific details about the progress of the investigation have been disclosed yet.
The firm is also focusing on the recovery of assets under management, separate from B&S holdings. Haru Invest aims to minimize losses and expects to recover these assets within a few weeks. In addition, the company is preparing a list of potential salable assets, with the goal of minimizing value loss during the sale process. This process is expected to take some time, and the company is considering selling its assets in phases.
Haru Invest is also working on organizing a database to clearly identify the credits and debts of its users. Once the amount of losses is confirmed and the asset distribution plan is finalized, the company plans to distribute the assets in phases. However, due to limited information on the exact amount of losses, the firm has not provided a specific timeline for this distribution.
The company has committed to providing weekly updates to its members, even if there are no major updates on the current situation. Haru Invest has also reassured its users that their legal rights will be equally protected, regardless of whether they belong to a class-action lawsuit group or not.
Haru Invest’s CEO, Hugo Lee, expressed his deepest regret for the inconvenience caused to investors and affirmed the company’s commitment to improving the situation.
Lawyer Lee Jeong-yeop of LKB & Partners, a legal firm representing the victims, assessed the loss to Haru Invest and Delio (another crypto lending firm affected by Haru) at up to 300 billion won ($230 million). Haru Investment is worth around 150 billion won, while Delio is worth approximately 100 billion won. Despite having a VASP (Virtual Asset Service Provider) license, Delio did not handle client assets correctly. While Haru Invest is a firm founded abroad, legal processes may be followed in Korea. Haru Invest and Delio were both held in Korea.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Haru Invest Faces Challenge In Asset Recovery, Considers Compensation Plans
Key Points:
- Haru Invest faces challenges in recovering assets from B&S Holdings, considering internal assets for compensation.
- Operations suspended, access restricted, and contracts terminated to protect customer assets.
- The database is being developed to identify user claims, salable assets list prepared, and asset distribution planned in stages.
Haru Invest, a South Korean digital asset management platform, issued an announcement saying that since the specific scale of recoverable assets held by B&S Holdings has not yet been fully determined, it is difficult to recover at present, so it is considering using the company’s internal assets for compensation.
Assets held by B&S will take longer to recover. To this end, Haru Invest is collating the database of claims and liabilities and reviewing the asset allocation plan. At the same time, Haru Invest said a compensation plan needs to be developed for each product.
Currently, after suspending deposit and withdrawal services, the team has suspended all operations, restricted access to company assets and accounts, and terminated the contracts of all employees to prevent damage and loss related to assets and data held by B&S, And minimize operating costs to protect the loss of customer assets. In addition, since the amount of client assets is determined based on a specific point in time in the database after the suspension of deposits and withdrawals last month, the team will inform users in advance if there are system errors or additional transactions, such as earning profits, and future payments may Will not be included in the customer asset database.
Haru Invest previously released an update on its official website stating that the company is developing a list of potentially salable company assets, with the goal of minimizing the loss of value when selling company assets, and is considering a phased sale company assets. In addition, Haru said that it is currently building a database to identify users’ claims and debts, and plans to distribute assets in stages in a timely manner once the loss amount is confirmed and the asset distribution plan is determined. The specific allocation time has not yet been determined.
On June 13, Haru Invest, a prominent investment firm, stated in an announcement that the platform encountered problems with its service partners.
Haru Invest also released an update regarding the ongoing investigation into B&S Holdings and its efforts to recover assets. The company has been fully cooperating with investigative authorities, although no specific details about the progress of the investigation have been disclosed yet.
The firm is also focusing on the recovery of assets under management, separate from B&S holdings. Haru Invest aims to minimize losses and expects to recover these assets within a few weeks. In addition, the company is preparing a list of potential salable assets, with the goal of minimizing value loss during the sale process. This process is expected to take some time, and the company is considering selling its assets in phases.
Haru Invest is also working on organizing a database to clearly identify the credits and debts of its users. Once the amount of losses is confirmed and the asset distribution plan is finalized, the company plans to distribute the assets in phases. However, due to limited information on the exact amount of losses, the firm has not provided a specific timeline for this distribution.
The company has committed to providing weekly updates to its members, even if there are no major updates on the current situation. Haru Invest has also reassured its users that their legal rights will be equally protected, regardless of whether they belong to a class-action lawsuit group or not.
Haru Invest’s CEO, Hugo Lee, expressed his deepest regret for the inconvenience caused to investors and affirmed the company’s commitment to improving the situation.
Lawyer Lee Jeong-yeop of LKB & Partners, a legal firm representing the victims, assessed the loss to Haru Invest and Delio (another crypto lending firm affected by Haru) at up to 300 billion won ($230 million). Haru Investment is worth around 150 billion won, while Delio is worth approximately 100 billion won. Despite having a VASP (Virtual Asset Service Provider) license, Delio did not handle client assets correctly. While Haru Invest is a firm founded abroad, legal processes may be followed in Korea. Haru Invest and Delio were both held in Korea.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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