• Haru Invest, a South Korean crypto yield platform, has fired over 100 employees.
• This decision was made due to issues with service partners and the external management company B&S Holdings.
• The company is taking legal action against B&S Holdings while also facing legal issues from investors.
Haru Invest Sacks Over 100 Employees
Haru Invest, a struggling South Korean crypto yield platform, has reportedly terminated contracts for over 100 employees. CEO Lee Hyung-soo said that „it is difficult to operate normally due to the recent situation.“
Reason for Dismissal
The decision to fire the employees came from Haru Invest, the operator of the crypto management service Haru , as well as the parent company Block Crafters . On June 13, Haru paused withdrawals and deposits , citing problems with service partners as the reason. Through an internal inspection process, they discovered that certain information provided by a consignment operator was „suspected to be false,“ the company said. They disclosed on June 14 that there was an issue with the external management company B&S Holdings .
Legal Action in Progress
On June 16, Haru announced legal action against B&S Holdings „for fraud, embezzlement, and other allegations.“ Meanwhile, the company has faced legal issues from investors who have taken legal action against it. CEO Lee said that they would cooperate with authorities to ensure their position is represented based on findings.
Impact of Decision
Neither the company nor Sedaily gave the exact number of employees impacted by this decision but CoinDesk Korea reported it to be over 100 people. Contracts are set to expire on June 23rd due to this decision taken by Haru Invest & its affiliated companies in order to prevent further damages that may occur if operations continue normally.
Haru Invest’s decision reflects its current situation which has been caused by suspected false information given by its consignment operator and external management company B&S holdings. The firm is currently taking necessary steps such as filing a lawsuit and cooperating with authorities while minimizing operations and terminating contracts of over 100 people in order to minimize damage caused by this incident