The halt of operations came shortly after an internal investigation revealed false information from its contract operator.
South Korean cryptocurrency yield platform, Haru Invest, put a sudden stop to all deposits and withdrawals on June 13th.
The decision followed an internal review that detected potentially misleading information from a contract operator, creating a wave of anxiety among its investors and clientele.
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The platform's swift reaction was a precautionary measure aimed at safeguarding its clients' interests. The Haru team indicated that it was taking prompt action to scrutinize the suspicious operator and would implement all necessary corrective measures once the facts were established.
After careful investigation, we concluded that immediate suspension of transactions was necessary to protect our investors. We are currently engaging in a fact-finding process against the operator in question and plan to take necessary measures.
Contrary to speculation, Haru Invest clarified that the company had not been subject to a "rug pull" - a sudden scam in the crypto world where developers abandon a project and run away with investors' funds. In the face of brewing uncertainties, the firm was unwavering in its commitment to protect its investor community.
The organization came under scrutiny earlier in the day when it disclosed an issue with a service partner. While Haru was knee-deep in investigation and contingency planning, local media reports circulated that Haru's staff were operating remotely and their offices were closed.
A news article from Maeil Business particularly agitated investors, claiming that they were unable to recover their deposits and that there was no possibility of regulatory intervention since the business was unregistered.
When talking about the allegations, the developers behind the Haru Invest project noted:
We regret that several media articles on this topic contained information that <is> factually inaccurate.
The incident is a stark reminder of the volatility and unpredictability inherent in the cryptocurrency industry.
