According to TechFlow news on June 17, The Block reported that the Southern District Court of Seoul, South Korea, announced on Tuesday that Haru Invest CEO Lee Kyung-soo was found not guilty of fraud charges. The company abruptly suspended user withdrawal functions in June 2023, reportedly causing losses of $650 million for about 6,000 investors. The court found that although there was negligence in the company's management, Lee Kyung-soo's actions did not meet the legal standards for fraud under criminal law. The court pointed out that Haru's suspension of withdrawals was mainly related to the broader liquidity crisis triggered by the bankruptcy of FTX. The two co-CEOs of Haru's parent company Blockcrafters were also acquitted, but the company's Chief Operating Officer was sentenced to two years in prison for embezzlement. The court emphasized that this ruling only absolves the defendants of criminal liability and does not affect their civil liability to the victims.
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The South Korean court ruled that Haru Invest CEO Lee Kyung-soo is not guilty of fraud charges.
According to TechFlow news on June 17, The Block reported that the Southern District Court of Seoul, South Korea, announced on Tuesday that Haru Invest CEO Lee Kyung-soo was found not guilty of fraud charges. The company abruptly suspended user withdrawal functions in June 2023, reportedly causing losses of $650 million for about 6,000 investors. The court found that although there was negligence in the company's management, Lee Kyung-soo's actions did not meet the legal standards for fraud under criminal law. The court pointed out that Haru's suspension of withdrawals was mainly related to the broader liquidity crisis triggered by the bankruptcy of FTX. The two co-CEOs of Haru's parent company Blockcrafters were also acquitted, but the company's Chief Operating Officer was sentenced to two years in prison for embezzlement. The court emphasized that this ruling only absolves the defendants of criminal liability and does not affect their civil liability to the victims.