Haru Invest Addresses Rehabilitation Procedures and Asset Distribution Concerns

On August 6, 2023, Haru Invest’s Hugo Lee released an official statement addressing concerns raised by members regarding the “rehabilitation procedure through the court” mentioned in a previous announcement.

Rehabilitation Procedures

Some members have approached the court seeking the initiation of rehabilitation procedures against Haru Invest Korea Co., Ltd. In response, the court has issued a preservative disposition and a comprehensive injunction order. The preservative disposition prevents Haru Invest from repaying debts until a decision on the commencement of rehabilitation procedures is finalized. The comprehensive injunction order restricts creditors from forcibly executing Haru Invest’s assets until a decision on the rehabilitation procedures is made. Haru Invest has an interrogation date set for later this month concerning the rehabilitation procedure case. The company plans to actively present its stance on the rehabilitation procedures to the court.

Asset Collection from B&S Holdings

Haru Invest is making efforts to retrieve assets from B&S Holdings using both civil and criminal legal avenues. However, the company anticipates that this process will be time-consuming. Haru Invest is considering strategies for the most efficient, swift, and equitable distribution of assets to its members. This includes a plan to first collect and distribute other assets and subsequently present a summary of these plans to the rehabilitation court.

Members’ Rights and Asset Distribution

Hugo Lee emphasized the importance of individual member rights and stated that these rights should be actively exercised and respected. Regardless of whether members choose to exercise their rights, Haru Invest is committed to ensuring that all members receive a proper and timely distribution of assets. Hugo Lee expressed his regret over the concerns raised by the previous announcement and reiterated Haru Invest’s dedication to achieving fair outcomes for all its members.

Background

In June 2023, Haru Invest navigated a series of critical events. On June 13, the company suspended new deposits and investment features due to crypto market uncertainties. On June 15, Haru Invest initiated legal action against B&S Holdings for alleged fraud and embezzlement, embarking on a fact-finding mission to assess the damage. CEO Hugo Lee addressed these incidents on June 20, apologizing to investors and pledging transparent communication and improvement.

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