The Southern District Court of Seoul acquitted Haru Invest’s CEO Hugo Hensu Lee and other top executives of the company in a case involving fraud and embezzlement of investor funds. The management was detained in February 2024 following a large financial scandal related to the platform’s bankruptcy.
This is reported by Бізнес • Медіа
Court Ruling and Further Accountability
During the proceedings, the court found no malicious intent in the actions of Haru Invest’s management, acknowledging that the losses incurred by investors were a result of negligence rather than fraudulent schemes. At the same time, the judge emphasized that the top executives still bear civil liability to the affected investors.
“Although the negligence of the management [of Haru Invest] does not require proof, their actions do not warrant criminal punishment,” the judge concluded.
In addition to the CEO, the court also found the co-CEOs of the parent company Block Crafters innocent. However, Chief Operating Officer Kana Mo received a two-year prison sentence for embezzling corporate funds, although some charges against him were dropped.
Background of the Case and Future of the Company
Haru Invest suspended withdrawals in June 2023, leading to massive layoffs and a wave of discontent among investors. The management attributed the financial difficulties to issues with the counterparty B&S Holdings and the bankruptcy of the cryptocurrency exchange FTX, which severely impacted the business’s stability.
At the time of the executives’ detention in February 2024, the prosecution accused them of embezzling 1.1 trillion Korean won (approximately $826 million), with 16,000 investors considered affected. Subsequently, the amount of losses was reduced to 880.5 billion won (about $650 million), and the number of affected individuals was decreased to 6,000.
In August 2024, during one of the court sessions, Hensu Lee was attacked by one of the affected clients, who claimed to have lost about 100 BTC. The attacker was sentenced to five years in prison.
As of June 2025, Haru Invest is in the process of liquidation. According to the law firm, the last creditors’ meeting took place in February 2025, but no further news regarding the distribution of funds has been received yet.