As an analyst with over two decades of experience in the financial industry, I find myself increasingly intrigued by the rollercoaster ride that is the cryptocurrency market. The latest news about Hugo Hyungsoo Lee, CEO of Haru Invest, being stabbed during a court trial, only adds fuel to the fire.


Based on a recent article by South Korean news source Digital Asset, it appears that the CEO of cryptocurrency asset management platform Haru Invest, Hugo Hyungsoo Lee, was involved in an altercation during a hearing held on August 28.

Lee is being accused of fraud based on South Korea’s Law Against Severe Economic Crimes. In February, he was officially charged with these allegations but was allowed to post bail in July.

Attacker Arrested

According to Digital Asset, an assault took place at the Seoul Southern District Court. At the time, Lee was stationed at the defendant’s table. The suspect, identified as Kang, allegedly sprinted towards the table and repeatedly stabbed the CEO of Haru Invest with a concealed 5-centimeter knife that was hidden, inflicting wounds to his neck.

Additionally, it was mentioned in the article that following the act, Lee collapsed on the courtroom floor, wounded, with security swiftly moving to detain Kang. Shortly afterwards, emergency responders appeared at the scene and whisked the injured party away to a nearby medical facility. The details of his current status are not yet disclosed.

It’s said that Kang, thought to be among those who suffered financial losses due to Lee’s alleged embezzlement, is currently being investigated by the police.

Executive Faces Fund Mismanagement Allegations

In the month of February, 2024, three top-level officials at Seoul, including Lee, were apprehended by prosecutors over charges of mishandling approximately $826 million worth of cryptocurrency that belonged to about 16,000 users of Haru.

According to reports from Yonhap News, Haru Invest is under scrutiny for allegedly placing the majority of their clients’ investments with a single person, while misrepresenting this as secure, distributed investment strategies. The company had drawn customers in with promises of returns as high as 12% through their Earn Plus product.

Due to worries expressed by multiple customers, authorities initiated a probe into Haru Invest and crypto lender Delio starting from June 14, 2023. In what appeared to be an attempt to conceal any harmful actions happening on their platforms, both firms unexpectedly halted withdrawals.

A few days passed, regulatory bodies like the South Korean Financial Services Commission (FSC) took control of all assets connected to Delio’s clients as well as the company itself, which encompassed numerous cold wallets and account books.

South Korea Crypto Regulatory Stance

Effective July 19, South Korea implemented tougher regulations for cryptocurrencies, enforcing continuous, real-time monitoring of digital asset transactions. spearheaded by the Financial Supervisory Service (FSS), these new guidelines aim to ensure that virtual asset trading platforms comply with their legal responsibilities.

To enhance the regulation of cryptocurrencies, the Financial Supervisory Service (FSS) worked together with crypto exchanges in creating ‘Guidelines for Abnormal Transaction Monitoring’. This collaboration also aimed to establish a routine monitoring system to identify and track potential fraudulent or criminal transactions.

As a researcher, I’m eagerly anticipating the forthcoming announcement by South Korean financial regulators regarding their new guidelines for virtual asset trading support. These regulations are expected to be disclosed in the near future.

Read More

2024-08-28 16:49