Crypto Fraud Trial Ends in Stabbing: Haru Invest CEO Steals $826M From Users

• Crypto fraud trials in South Korea are erupting in violence. 
• Haru Invest suspended withdrawals, triggering panic. 
• The platform promised safe and risk-free investments. 

South Korea is currently gripped by one of the biggest crypto fraud trials in the country. Haru Invest CEO Hugo Hyungsoo Lee faces trial for his alleged role in a massive fraud that cost 16,000 users approximately $826 million in crypto. 

Recently, the case culminated in extreme violence when a victim sought to take revenge on the disgraced CEO. 

Disgruntled Investor Attacks Crypto Fraudster

In one of the biggest crypto fraud cases in South Korea, tensions were high as victims sought justice for their lost investments. The situation took a tragic turn on Wednesday, August 28, when Haru Invest CEO Hugo Hyungsoo Lee was attacked. 

A disgruntled investor stabbed Lee multiple times in the neck before being subdued by the security personnel. The attacker, a man in his 40s, was reportedly one of the 16,000 victims of Haru Invest’s bankruptcy, which collectively cost them $826 million. 

While Lee is currently in the hospital, where he is recovering from the attack, the tragedy serves as a reminder of the real cost of crypto fraud. Faced with losses of their life savings, many people will stop at nothing to get revenge. 

How Haru Invest Defrauded Users

On June 13, 2023, Haru Invest suddenly suspended all withdrawals, leaving its users in shock and sparking fears of insolvency. The following day, Delio, another cryptocurrency platform with funds managed by Haru Invest, also halted withdrawals, further deepening the crisis. 

In response, South Korean authorities quickly intervened. Their investigation culminated in the February 2024 arrest of three top executives, including CEO Hugo Hyungsoo Lee. According to prosecutors, Lee and his colleagues allegedly embezzled $826 million from their users between March 2020 and June 2023. 

While marketing itself as a stable and risk-free investment platform, the company pursued risky trading strategies. The case cost users millions, reminiscent of FTX’s collapse, which also misled users about their investment strategies. 

On the Flipside

• South Korea is one of the countries with the highest exposure to crypto. It is also home to high-profile crypto projects, the most famous of which is Terra-Luna, whose founder, Do Kwon, also faces persecution.  
• Around the same time Haru Invest suspended withdrawals, another South Korean crypto lender did the same. Due to widespread investor panic, Delio also froze withdrawals . However, the company has since recovered. 

Why This Matters

The violent attack on Hugo Hyungsoo Lee underscores the real costs of crypto crime, showing how far some people will go when put in desperate situations. 

Read more about the Haru Invest case: 
Haru Invest CEO Arrested in South Korea for $828M Fraud

Read more about how MakerDAO’s radical shift in direction: 
Here’s What MakerDAO’s Rebrand to Sky Changes and Why