HaruInvest Bankruptcy Administrator | Shocking Claims Soar to 1.39 Trillion Won
The virtual asset woes of Haru Management Limited have reached new heights, with claims totaling a staggering 1.39 trillion won revealed as of November 2024. This shocking development followed harrowing investigations and legal battles ignited by a sudden halt in customer transactions back in June 2023.
HaruInvest, once a rising player in the virtual asset sector, declared bankruptcy on November 20, 2024. As the dust settles, Attorney Lee Wang-min, the appointed bankruptcy administrator from Daeryun Aju Law Firm, reported on February 11, "While there are no bankruptcy claims tied to monetary debts, virtual asset creditors' deposits are significant, estimated at trillions of won."
The Backstory: A Business Crumbles
The saga began when HaruInvest abruptly suspended deposits and withdrawals, leaving thousands of investors in limbo. Legal actions followed, with victims fiercely pressing for accountability.
The stakes could not be higher for the 11,550 creditors affected, comprising around 30% Korean nationals and 70% from other countries. A breakdown revealed that many investors, including over 6,400 individuals who lost less than a million won, now grapple with the weight of their lost savings.
Interestingly, the bankruptcy administrator’s report noted that key virtual assets were tracked through Haru United, marking the full extent of the fallout. As one creditor said, "The sheer scale of this loss is devastating."
Virtual Assets Under the Microscope
As Haru Management’s claims come into focus, a clearer picture of the virtual assets involved is emerging:
BTC (Bitcoin): 271.1 billion won at suspension / X trillion won at bankruptcy
ETH (Ethereum): 115.7 billion won / 226.8 billion won
USDC (US Dollar Coin): 4.5 billion won / 4.9 billion won
USDT (Tether): 32.4 billion won / 35 billion won
XRP (Ripple): 30.2 billion won / 68.6 billion won
Although some assets have been partially recovered, much remains entangled with FTX, complicating the path forward. Currently, ongoing litigation with B&S Holdings adds to the uncertainty surrounding these recoveries.
The Outlook: Uncertain Future for Creditors
Predictably, recovery hopes are dimming fast. The trustee underscored the unpredictable nature of potential dividends, referencing the complexity added by the broader financial landscape. "It is difficult to estimate assets recoverable at this point, especially with multiple claims investigations still pending."
The sentiment among creditors varies widely from skeptical to disheartened, as many fear they might never see their investments again.
"Nobody knows when this chaos will end, or if we’ll even get a dime back," expressed one distressed investor.
Key Takeaways
△ Claims for virtual assets stand at 1.39 trillion won, largely due to the creditor base.
△ Ongoing litigation with FTX raises doubts about recovery.
▽ “Expect a lengthy battle ahead,” warns the bankruptcy administrator.
As discussions swirl around asset recovery, one question remains: How long can creditors expect to wait for any resolution?
Updates are sure to follow as HaruInvest's tale unfolds further in the courtroom.