A South Korean man identified only by his last name, Kang, could be imprisoned for the next 10 years after stabbing the CEO of Haru Invest, Lee Hyung-soo, during a fraud trial. Kang lost nearly $8.3M worth of Bitcoin when Haru Invest went bankrupt and withheld 1.4T Korean won (roughly $962M) belonging to around 16K investors in and outside of South Korea.
The 51-year-old Kang stabbed Lee in the neck several times with a fruit knife before the executive–who did not sustain life-threatening injuries–was quickly taken to the hospital. Kang explained during the hearing that the emotional strain from his financial losses led to his violent outburst. His lawyer argued that the attack should be considered aggravated assault rather than attempted murder.Â
Haru Invest Victims’ Association held a press conference demanding Kang’s release, arguing that fraud victims like him were being treated unfairly while executives accused of embezzling hundreds of millions of U.S. dollars walked free on bail.Â
Kang stabs Lee during the court proceedings of a fraud trial
In Seoul, a man in his 50s named Kang stabbed a crypto CEO during a fraud trial.
He claims his act was driven by extreme distress after a huge crypto loss following his firm's collapse.
Now he faces up to 10 years in prison—a wild, messy turn for the crypto world.
— Ian Balina (@DiaryofaMadeMan) March 19, 2025
Lee was stabbed in court during his fraud trial in August 2024 by Kang who is now facing a potential decade behind bars according to local media reports. An anonymous court representative suggested that the Kang may have bypassed security by using a ceramic knife. Ceramic weapons can easily be slipped past the metal detectors commonly used in court security checkpoints.
The Southern District Prosecutors’ office in Seoul, South Korea, requested the court to sentence Kang to 10 years in prison for the stabbing. However, Kang’s lawyers pushed for a reduced charge of aggravated assault rather than attempted murder, citing his severe financial and psychological hardships.
According to AInvest, this incident highlighted the volatile–and sometimes dangerous–nature of the crypto industry, where high-stakes financial dealings could lead to extreme actions. Kang approached Lee from behind and attempted to kill him by striking him repeatedly, but it ended in an attempt.’ However, Kang’s defense argued that he had no intention of killing Lee, noting that he did not target a fatal area and acted in a moment of extreme emotional distress.Â
Haru Invest’s ‘rug pull’ leaves investors in huge lossesÂ
The Seoul Rehabilitation Court declared Haru Invest bankrupt after it was implicated in crypto fraud. Investigations by South Korean law enforcement revealed that Haru Invest, a crypto yield firm operating under Haru Management Limited, defrauded investors of 1.4 trillion Korean won (~$1 billion) in a ‘rug pull’ scheme that left creditors in huge losses. The trial is critical because of the large amount of money involved and the timing–South Korea recently updated its laws to protect consumers in the crypto industry.
The South Korean government passed a law in 2023 which guarantees the protection of assets held by users. The ‘Virtual Asset User Protection Act’ aims to regulate unfair transaction activities, provide greater market oversight, and pass authority to the Financial Services Commission (FSC). Virtual asset service providers like Haru Invest have been regulated under the revised Act on reporting and using specified financial transaction information since March 2021.Â
However, the current regulatory framework is limited in ways that do not allow authorities to actively respond to various types of unfair transaction activities, prevent damages incurred to the users of digital assets, and effectively assist victims with relief measures.
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