In a surprising turn of events, Lee Hyung-soo, the CEO of South Korean cryptocurrency investment platform Haru Invest, has been cleared of all charges related to a massive $650 million fraud case. The Seoul Southern District Court ruled on June 17, 2025, that there was insufficient evidence to prove intent to deceive investors, marking a significant development in one of the largest crypto fraud trials in the region.
Haru Invest, once a popular platform promising high returns on crypto deposits, faced a catastrophic collapse in 2023 when it abruptly froze withdrawals, leaving thousands of investors unable to access nearly $1 billion in funds. The platform's failure was attributed to the broader crypto market downturn, which severely impacted its operations and investor trust.
The prosecution had accused Lee and other executives of embezzlement and fraud, alleging they misled investors with false promises of guaranteed returns. However, the court found that the collapse was largely due to external market conditions rather than deliberate deception by the company's leadership.
This verdict comes months after a dramatic incident in August 2024, when Lee was stabbed in the neck by an aggrieved investor during a court hearing. The attack, which left Lee with non-life-threatening injuries, underscored the intense emotions surrounding the case and the financial devastation faced by many Haru Invest customers.
While Lee has been acquitted of criminal charges, the ruling does not resolve the civil claims and ongoing efforts by investors to recover their lost funds. Legal experts suggest that this decision may set a precedent for how crypto platform failures are adjudicated in South Korea, a country known for its stringent regulations on digital assets.
The Haru Invest saga continues to highlight the risks of investing in volatile cryptocurrency markets, with many calling for stronger investor protections and oversight. As the industry evolves, cases like this serve as a stark reminder of the potential pitfalls awaiting unwary participants.
Andrew Lee
