South Korean court declares crypto custody service provider Haru Invest bankrupt

The 14th Bankruptcy Court of Seoul Bankruptcy Court in South Korea declared Haru Invest, a cryptocurrency custodian, bankrupt. The company is suspected of defrauding more than 16,000 investors of about 1.4 trillion won (about 1.08 billion U.S. dollars) in crypto assets from March 2020 to June 2023 by promising high returns with guaranteed principal. Considering that the company was established in the British Virgin Islands but has an office in South Korea, the court appears to have ruled that domestic courts have jurisdiction. In addition to filing a criminal lawsuit, the investor also applied to the court for corporate reorganization procedures in June last year, but the court rejected the request and then filed for bankruptcy in April. The court will hold the first creditors' meeting on February 11, 2025, and the bankruptcy administrator will liquidate and distribute the company's assets. (Newsis)