A South Korean court has acquitted Lee Hyung-soo, co-founder and CEO of Haru Invest, of fraud charges.
Court Ruling in Haru Invest Case
On June 17, a Seoul court acquitted Lee Hyung-soo of fraud allegations, confirming that the charges were not substantiated. The ruling came after nearly two years of legal proceedings that began following the withdrawal suspension on the Haru Invest platform.
Defense Arguments
Haru Invest's lawyers maintained that the service disruption was caused by external factors such as the bankruptcy of FTX, hindering their ability to meet customer obligations. The court concurred that while there were management shortcomings, this did not equate to fraud.
Outcomes of the Court Proceedings
In addition to Lee, co-founders Park and Song were also acquitted. Although COO Kang Mo was not found guilty of fraud, he was convicted of embezzlement and sentenced to two years in prison, three years of probation, and 120 hours of community service.
The Haru Invest case highlights significant challenges faced by companies in the crypto sector amidst market fluctuations, underlining the complexities of regulatory oversight.
