In a significant development in the ongoing investigation into the withdrawal suspensions of local cryptocurrency lender Delio and investment firm Haru Invest, South Korean prosecutors have issued an arrest warrant for a key person of interest known as “Bang.” This individual reportedly owns a majority of shares at B&S Holdings, a firm that Haru Invest has alleged to be the root cause of the service suspensions.
Arrest warrant issued for Bang
The arrest warrant, issued on Bang by South Korean prosecutors, comes amid a complex web of allegations and complaints involving Delio, Haru Invest, and B&S Holdings. Bang, whose full name remains undisclosed due to local media privacy rules, has been targeted for charges of fraud and breach of trust. The warrant application, submitted by the South Korean police, is currently under review by a local court in Seoul.
Background: Delio and Haru invest suspension
The investigation stems from events that unfolded on June 14, 2023, when Delio, a cryptocurrency lender claiming to process over a billion dollars in crypto lending and borrowing services, abruptly halted user withdrawals. Delio attributed this suspension to the sudden cessation of deposits and withdrawals at Haru Invest, a crypto investment manager with whom Delio had a partnership.
On the same day, Haru Invest filed a criminal complaint against B&S Holdings, a consignment operator. Haru Invest alleged that B&S Holdings had deceived the company by providing false management reports, claiming losses of 350 billion Korean won (approximately $262 million) in funds due to the collapsed FTX exchange.
Customer complaints and travel restrictions
In the wake of these developments, disgruntled customers of Delio and Haru Invest filed complaints with the respective companies’ executives. Subsequently, South Korean prosecutors took action to prevent key members of Delio, Haru Invest, and B&S Holdings from leaving the country.
The Seoul Southern District Prosecutors’ Office has not yet responded to requests for confirmation and further comments regarding these reports.
The issuance of an arrest warrant for Bang represents a significant step in the investigation into the withdrawal suspensions of Delio and Haru Invest. As the legal proceedings continue, further details regarding the allegations and the impact on the cryptocurrency industry in South Korea are expected to emerge.