Haru Invest CEO Hugo Hyungsoo Lee was physically assaulted during his ongoing fraud trial at the Seoul Southern District Court, as reported by local media outlet Digital Asset on Aug. 28.

According to the report, a man named "Kang" repeatedly stabbed Lee in the neck with a concealed 5 cm knife.

Although courtroom guards swiftly subdued Kang, Lee was reportedly seen injured on the floor. He was taken to a nearby hospital, and his current condition remains uncertain.

Meanwhile, authorities have confirmed that Kang, apprehended at the scene, is a victim of Haru Invest and is currently under investigation.

Haru Invest issues

This incident adds to the mounting difficulties facing Haru Invest.

Last year, the platform halted user withdrawals, citing false information from an unidentified consignment operator. Concerns grew when the company closed its Seoul office and removed its YouTube and LinkedIn profiles, leading to rumors of fraud and a potential rug pull, which the company strongly denied.

Despite this incident, Haru's failure to resume withdrawals or provide a clear explanation has led to further speculation and increased regulatory scrutiny.

In February 2024, South Korean prosecutors apprehended three Haru executives, including the co-CEOs, for allegedly embezzling approximately $826 million from 16,000 users. The executives are accused of deceptively promoting a “risk-free diversified investment strategy” while primarily using customer deposits for their own purposes.

Haru's difficulties have also impacted another South Korean crypto lending platform, Delio, which authorities are currently investigating.

South Korea’s crypto relationship

South Korea is among the leading countries worldwide in cryptocurrency adoption, driven mainly by retail investors. Institutional and foreign investors face restrictions, limiting their participation in the market.

Chainalysis reported that South Korea received over $111.82 billion in cryptocurrency value from July 2022 to June 2023. This is the largest amount in East Asia, exceeding the region's biggest economies, Japan and China.

In response, South Korea has taken a proactive stance on crypto regulation . The country aims to establish high standards to safeguard industry users while aiming to be a leader in managing challenges within the crypto industry.