Its South Korea court has overland Lee Hyung-SOO, CEO of Crypto Investment Haru Invest, is the charges of criminal fraud associated with the alleged mismanagement of investor funds of more than $ 650 million.
The decision, which was issued on Tuesday from the Southern Seoul Court, comes nearly a year after Haro suddenly frozen clients and closed operations in mid -2013.
The ruling follows the intense audit of public prosecutors, investors and the broader public, as the case has become one of the most prominent legal battles related to encryption in the country.
LEE and many executives of Haru Invest and their mother company were accused of distorting investment risks while providing high-return returns-up to 25 % annually, before the company suspends operations.
Prosecutors initially estimated the damage of more than a billion dollars, which affects 16,000 users, but later they reviewed the number to nearly 650 million dollars linked to about 6000 investors. The prosecution requested a 23 -year prison sentence for me, on the pretext that the investment model is deliberate fraud.
The court finds no criminal intention amid the repercussions of the broader market
The court decided that although there is an administrative failure, Lee’s actions did not fulfill the criteria of criminal deception under the South Korean law. The referee referred to external factors such as the FTX exchange collapse and the disturbance of the subsequent encryption market, which contributed to Haru’s inability to meet the commitments of the investor.
According to the report, the court supported the Lee claim that the Haru business model involves legitimate investment strategies and generating real profits, which distinguishes the issue from the deliberate Ponzi-style operations.
Co-Coos of Blockcrafters, which were identified only by their titles and songs due to privacy standards in South Korea, were acquitted of fraud. Kang, chief operating officer in Blockcrafters, was cleared of fraud, but he was convicted of embezzlement and sentenced to two years in prison.
The ruling leaves the opening of the path to civil litigation, as the court confirmed that the ruling is only related to criminal responsibility and the defendants do not excuse the financial accountability of the affected investors.
In a separate but relevant incident, I was attacked by the court’s procedures in August 2023 by an individual claiming to have lost 100 BTC, worth millions of dollars, on the failed investment platform in Haru.
The attacker was sentenced to five years in prison in April 2024. I survived the stabbing due to the non -deadly injuries and continued to maintain that he is working to compensate the victims through bankruptcy efforts.
Wide effects on the organization of encryption in South Korea
The result of the Haar Invest issue may affect future legal explanations for increasing in South Korea, especially in cases where business failure is driven by foreign market shocks instead of deliberate deception.
South Korea is actively updating its regulatory position on digital assets, and this prominent ruling may lead to more legal clarification on the responsibilities of custody and the protection of investors in the encryption industry.
The acquittal of me, with a mitigation of criminal charges, leaves fears that have not been resolved for thousands of investors who are still waiting for compensation. The bankruptcy and potential civil lawsuits will continue to form the most important of the most important encryption in South Korea so far.
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