Haru Invest executive attacked during fraud trial in South Korea

A Haru Invest executive, facing charges of embezzlement, was stabbed during a court hearing, heightening security concerns around his ongoing fraud trial. 

According to South Korean news outlet Digital Asset, Hugo Hyungsoo Lee, CEO of the crypto asset management platform Haru Invest, was attacked on August 28 while appearing in the Seoul Southern District Court. 

Lee is facing charges under South Korea’s Act on the Aggravated Punishment of Specific Economic Crimes. 

He was initially indicted in February 2024 and released on bail in July. 

The attacker, identified as a man named Kang, reportedly rushed to the defendant's bench and stabbed Lee several times in the neck with a concealed 5-cm knife. 

Security intervened quickly, and emergency services transported Lee to a nearby hospital. 

His condition remains unknown. 

Kang, believed to be a victim of Lee's alleged embezzlement, is now under police investigation. 

The case against Lee involves allegations of mismanaging around $826 million in cryptocurrency belonging to approximately 16,000 Haru Invest users. 

Reports indicate that Haru Invest falsely promoted its fund management as "risk-free distributed investment techniques" while entrusting most of the client deposits to a single individual. 

Following concerns from clients, authorities initiated investigations into Haru Invest and related crypto lender Delio, both of which suspended withdrawals on June 14, 2023. 

Shortly after, the South Korean Financial Services Commission seized assets from Delio, including various cold wallets and ledgers. 

The incident coincides with South Korea's tightening of its crypto regulations, which took effect on July 19. 

These regulations include round-the-clock monitoring of digital asset transactions to ensure compliance with legal obligations. 

The Financial Supervisory Service is also working with exchanges to develop new guidelines for abnormal transaction monitoring and is set to release additional rules for virtual asset trading soon.