Bankrupt South Korean earnings platform Haru Invest said it would return users' assets but gave no specific timetable.

In a Q&A session on October 2, Haru Invest CEO Hugo Lee said the company plans to conduct "staged asset recovery and distribution" in several rounds by disposing of recovered assets. Li wrote:

"However, it is important to note that as the legal process, including recovery and cooperation with investigative agencies, is still ongoing, we are essentially unable to distribute the assets ourselves. Therefore, it is not possible to predict and tell you an asset distribution timeline at this time.

During the meeting, Lee also assured that investors would get their money back through a fair distribution system, rather than prioritizing South Korea's creditors. An estimated 60% of Haru Invest users are located overseas, compared with 40% in South Korea.

In June, Haru Invest suspended all deposits and withdrawals after discovering suspected fraudulent activity at consignment operator B&S Holdings. The company later filed for bankruptcy. The collapse of Haru Invest also caused contagion for crypto lender Delio, which held $1 billion in Bitcoin (BTC) and $200 million in Ethereum (ETH), when it also suspended deposits and withdrawals in June.

At the time of filing, Haru Invest claimed to have more than 80,000 members, 9.8 million cryptocurrency earnings paid out and $2.27 billion in total transactions. Haru previously targeted an annual return of 12% on most of its income products. Last September, it raised $4 million at a $284 million valuation.

In an update on September 25, Haru Invest said that the company is currently undergoing maintenance "with a minimum number of operating personnel." Therefore, its website login is no longer valid.

Important update from Haru Invest. https://t.co/igdTS2DaNp pic.twitter.com/E8mB6PeDQW

— Spring Investment (@haruinvest) June 13, 2023

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