Haru halts withdrawals and deposits

Haru Invest, a South Korean interest-bearing crypto platform, said on June 13 that it has halted deposits and user withdrawals.

User access to funds suspended

Haru said that it was necessary to halt transactions in order to protect investors following a business error. It did not state when it might reopen deposits and withdrawals.

The company explained that it decided to halt services after finding that information provided by a partner — specifically a consignment operator — was false. It said that it is now investigating the operator and said that it plans to take “necessary measures.”

Haru attempted to reassure users that rumors, such as suggestions that company members have performed a rug pull scam, are inaccurate.

Community members noted that the company has deleted its YouTube and LinkedIn profiles, something that Haru did not admit to in its announcement.

Other companies halted services in 2022

Several other crypto platforms that offered lending or interest-bearing features halted user withdrawals beginning in the summer of 2022. Celsius, Voyager Digital, Babel Finance, CoinFlex, and BlockFi were among the companies to halt withdrawals around that time. Many of those companies later filed for bankruptcy.

Unlike some of the above companies, Haru has not explicitly said that a lack of funds motivated its service halt, nor has it said that it will file for bankruptcy. However, the company’s incomplete explanation leaves the severity of its situation unclear.

The company reports less than $1 billion in assets under management.

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