Content Overview
The current situation of assets being held by B&S taking a longer time to recover has compelled Haru Invest to take specific measures that involve collating the database of claims and liabilities along with their allocation plan review. At the same time, specific product plans for compensation are being developed by Haru Invest.
Suspension of Services
Due to the current situation, Haru Invest was forced to suspend their deposit and withdrawal services. They also put a halt to company operations and withheld access to assets and accounts in order to safeguard the assets and data from the impact of B&S Holdings. To cut costs and further safeguard their customers’ assets, the company also terminated existing contracts with its employees.
An important thing to mention here is that the business operations related to any dealings with clients’ assets will be brought to a halt after a specific time once the suspension is made to deposits and withdrawals. In an attempt to keep the users on loop, the team plans to inform its users in advance about any potential system errors, any new transaction or profit-making opportunities etc. Any such transactions will then not be included in the customer asset database.
Statement Release by Haru Invest
Haru Invest recently issued an official statement on its website outlining plans to develop a strategic plan to sell company assets, in an attempt to minimize losses. This plan would be executed in phases. Besides, Haru also mentioned their ongoing project of creating a database to highlight users’ claims and debts. The process will facilitate assessment of the loss amounts, and once the asset distribution plan is finalized, the company will attempt to distribute the assets over time. The specific timeline for this process remains undecided.
Involvement with Service Partner
On the 13th of June, Haru Invest vocalized an unexpected issue with one of its service partners. The platforms have been facing challenges that have impacted their operation.
Recovery Efforts
Haru Invest also communicated that it has been working tirelessly to recover the assets from B&S Holdings through deep investigations. Their cooperation with investigators has been transparent, even though they have not released specific details about the investigation progress.
The company’s focus now remains on the recovery of the assets managed by the firm, separate from the B&S holdings. Haru Invest has set goals to minimize losses and expects to recover these assets within a short period. The company has also started preparing a list of potential assets to be sold, with an aim to minimize value loss during the sales process and is considering selling its assets in phases.
Organizing Database for User Claims
Additionally, Haru Invest is also working on organizing a database that clearly identifies the credits and debts of its users. Once the loss amounts have been confirmed and the asset distribution plan has been finalized, the company plans to distribute the assets. However, no specific timeline has been provided because information regarding the exact amount of losses is limited.
Protection of Legal Rights
Haru Invest is well-aware of its customers’ worries and reassures them that their legal rights are equally protected whether they are part of a class-action lawsuit group or not. Taking it a step further, to keep its customers updated, the company has made a commitment to provide weekly updates to all its members, even if there are no major developments.
Statement from the CEO
The CEO of Haru Invest, Hugo Lee, has shown deep regret for the inconvenience caused to the investors. He assured all concerned parties that efforts are being made to improve the situation.
Loss Assessment
With the help of LKB & Partners, the victims’ legal firm made an assessment about the loss faced by Haru Invest and Delio. Haru Invest’s loss was determined to be around 150 billion won, while Delio’s loss was around 100 billion won. Delio, despite having a VASP (Virtual Asset Service Provider) license, was found to misuse the client assets. Haru Invest and Delio were both held in Korea; hence legal processes may be followed in Korea.
DISCLAIMER:
The information mentioned on this website is market commentary and doesn’t constitute investment advice. We always advise you to conduct your own research before investing.