South Korean prosecutors have barred Haru Funding executives from touring in a foreign country following prison complaints of “serial suspending withdrawals” fraud, in response to a Digital Asset June 25 report.
The ban impacts unnamed executives from Haru Make investments, Delio Chung Sang-ho’s CEO, and a B&S shareholder recognized as Bang.
Why journey restrictions
The journey ban is coming after Haru Make investments suspended withdrawals for customers on June 13, citing false data from an unnamed consignment operator.
Buyers have been spooked after the agency closed its workplace in Seoul, with neighborhood members noting that the corporate deleted its YouTube and LinkedIn profiles. These actions led to speculations of fraud and suspicions of a rug pull—a declare viciously denied by the agency.
In the meantime, its unnamed consignment operator has been revealed to be the renewable power firm B&S Holdings. Its shareholder Bang was positioned on journey restrictions after prosecutors linked him to Haru’s transaction exercise suspension.
Whereas Delio CEO Chung Sang-ho initially denied publicity to Haru, he later confirmed that they deposited crypto property within the troubled agency. On June 14, the crypto lending platform briefly halted withdrawals to guard clients’ property.
South Korean investigators are reportedly investigating Delio for embezzlement and breach of obligation.
Not a Rugpull
A former government of Haru Make investments and its co-founder, Eunkwang Joo, has defended the corporate towards insinuations of the rug pull.
In a June 13 Twitter thread, Joo stated the problems at Haru have been solely an inside drawback, including that “it isn’t a state of affairs the place they’re maliciously making an attempt to do a rug pull.”
Nonetheless, he conceded that the agency’s closure of its social media accounts with out additional official communications would depart many buyers involved.
Joo left the corporate greater than a yr in the past.
Since suspending its withdrawal and deposit actions, the agency has laid off over 100 workers.
CryptoSlate has reached out for remark from Haru Make investments executives recognized to the corporate.
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