- Attacker Was a Former Client of the Company
- What Are Prosecutors Accusing the Company Executives Of?
- New Crypto Asset User Protection Act
In the cryptocurrency field, we occasionally encounter various developments. Today’s incident is likely a first. Haru Invest CEO Hugo Hyungsoo Lee was repeatedly stabbed in the neck during a corruption trial. The attacker, reportedly in his 50s, was identified by local media, and Lee was rushed to the hospital. Fortunately, his injuries were reported to be non-life-threatening.
Attacker Was a Former Client of the Company
The attacker is alleged to be a former client of Haru Invest. The attack caused a significant stir not only due to the high stakes of the case but also because it occurred during the process of updating consumer protection laws in South Korea. Lee was one of three executives arrested in February this year for embezzling cryptocurrency worth 1 trillion won.
What Are Prosecutors Accusing the Company Executives Of?
Prosecutors allege that Haru Invest executives made misleading statements about managing deposits collected from approximately 16,000 customers between March 2020 and June 2023, claiming they were operating with a risk-focused diversified investment technique. After June 2023, cryptocurrency withdrawal transactions were halted without any notice.
New Crypto Asset User Protection Act
Last year, South Korea enacted the “Crypto Asset User Protection Act” to strengthen consumer protection laws. The law aims to increase market oversight, regulate unfair trading activities, and grant broader powers to the Financial Services Commission (FSC). The legislation was crafted in response to past incidents like the Terra-Luna collapse and the bankruptcy of FTX, intending to prevent user losses in the crypto market. With this law, the FSC is expected to more effectively supervise the market and impose sanctions on cryptocurrency service providers. It also aims to provide relief measures for victims.
The attack highlighted once again how dangerous the lack of regulation in the cryptocurrency world can be. The fact that the attack did not result in a fatality is seen as crucial for the continuation of the trial.
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