Haru Invest CEO Acquitted in $650M Crypto Fraud Case

A South Korean court has cleared Haru Invest CEO Lee Hyung-soo of fraud charges related to the loss of $650 million in customer crypto assets. The Seoul Southern District Court ruled that while management showed negligence, prosecutors failed to prove criminal intent.

Presiding Judge Yang Hwan-seung noted the difficulty in classifying Hyung-soo's actions as punishable deception under criminal law. The executive had faced charges under the Act on the Aggravated Punishment of Specific Economic Crimes.

Two co-defendants from Blockcrafters were also acquitted, though the company's COO received a suspended sentence for embezzlement. The court accepted defense arguments regarding business sustainability and marketing practices, acknowledging Hyung-soo's use of market-neutral strategies with client funds.