Haru Invest CEO cleared of fraud after $650 million loss

• Haru Invest CEO cleared of crypto fraud
• South Korean court acquits executive after multi-million dollar loss
• Haru crisis linked to FTX bankruptcy

A district court in Seoul acquitted Lee Hyung-soo, CEO of South Korean cryptocurrency investment platform Haru Invest, over fraud allegations related to the abrupt suspension of withdrawals in 2023, which resulted in an estimated $650 million in losses for approximately 6.000 investors.

Güney Kore'de kripto yatırım platformu Haru Invest'in CEO'su Lee Hyung-soo, hakkında açılan dolandırıcılık davasında suçsuz bulundu.

🔗 Details here: https://t.co/Cz1b7CakC4 pic.twitter.com/9oIxL2bJ1L

— BiLira Kripto (@BiLira_Kripto) June 17, 2025

The court ruling found that Lee did not act with deliberate intent to mislead users, despite the gross administrative negligence acknowledged in the lawsuit. The court attributed the collapse of Haru Invest to a liquidity crisis triggered by the bankruptcy of FTX, which contributed to the collapse of several companies in the crypto sector.

The case gained notoriety when prosecutors initially alleged embezzlement of 1,39 trillion South Korean won, or about $1,02 billion, involving 16.000 investors. The charges were later adjusted to $650 million, involving 6.000 investors, with prosecutors seeking 23 years in prison for the executive.

During his trial in August 2023, Lee was the victim of a violent attack when he was stabbed in the neck by an investor who claimed to have lost 100 BTC on the platform. The attacker was sentenced to five years in prison in April this year. Lee suffered only minor injuries and survived the attack.

In addition to Lee, the co-CEOs of parent company Blockcrafters, identified only as Park and Song, were also found not guilty of fraud charges. Kang, the chief operating officer, was sentenced to two years in prison for embezzlement but acquitted of the main charge.

Despite the criminal acquittal, the court stressed that executives could still be held civilly liable for losses caused to investors. Lee has previously said he is committed to recovering losses through the company's bankruptcy process.

Haru Invest, which offered promises of capital returns with up to 25% annual interest, was one of several platforms impacted by the wave of insolvencies that followed the collapse of FTX, reflecting the structural risks present in the decentralized finance and crypto investment sector.