South Korea issues arrest warrant for key employee of crypto lender Delio

[Brother]

South Korean prosecutors have issued an arrest warrant for the main fraud suspect in the case of cryptocurrency lender Delio and investment company Haru Invest.

Local police managed to track down a man known as Bang, who is accused of crypto fraud and breach of investor trust. His full name is not being disclosed for privacy reasons. The arrest warrant application filed by South Korean police is currently pending before a local court in Seoul.

Prosecutors allege that this person owns a controlling stake in B&S Holdings, a company that could have caused Haru Invest to suspend customer service. The investigation began when the Delio platform suddenly stopped withdrawing user funds in June 2023. Delio management explained this suspension by the fact that its business partner Haru Invest also stopped withdrawing funds and replenishing deposits. Haru Invest has closed its offices and also deleted its accounts on the social networks Medium, LinkedIn and Instagram.

On the same day, Haru Invest filed a criminal complaint against the operator B&S Holdings. Haru Invest has accused B&S Holdings of deceiving and falsely reporting lost funds amounting to 350 billion Korean won (about $262 million) due to the collapse of the FTX crypto exchange. In connection with these events, dissatisfied customers of Delio and Haru Invest filed complaints with South Korean prosecutors, who took further measures to prevent key employees of Delio, Haru Invest and B&S Holdings from leaving the country.

 

[Teacher]

Three executives of the cryptocurrency investment platform Haru Invest were arrested in South Korea, The Block reports.

Seoul Southern District prosecutors accused the detainees of stealing digital assets worth about 1.1 trillion Korean won ($826 million) from about 16,000 users.

The platform allegedly invested the majority of client funds through one individual. The company assured that deposits are managed using “risk-free distributed investment methods.” The company offered users of the Earn Plus product a yield of up to 12% per annum.

Law enforcement began an investigation into Haru Invest and the cryptolending company Delio, which collaborated with it, after both firms suspended the withdrawal of funds in June 2023. The platform's management referred to problems with the service partner.

Next, Haru Invest filed an application for B&S Holdings. The company alleged that the consignment partner misled the company with false reports, losing more than $260 million in the collapse of FTX.

In January, prosecutors issued an arrest warrant for the owner of B&S Holdings.

“During the course of the investigation, we will carefully determine the true nature of the alleged crime, while doing everything possible to repair the damages and recover the proceeds of crime,” police said.