Haru Invest, a beleaguered cryptocurrency platform, has announced its intention to suspend its servers, a few months after it halted withdrawals in June 2023. The company's CEO, Hugo Lee, made the announcement on October 16, citing the need to reduce server maintenance costs as the primary reason. Lee pointed out that these costs constitute the largest proportion of the platform's fixed expenses. However, he clarified that the company does not yet have a clear plan for the server suspension, which is expected to take place in the coming weeks.
The decision to shut down the servers comes as Haru Invest is actively exploring strategies to reduce operational expenses associated with its services. This includes not only server maintenance but also costs related to office workspaces and communication with its members. Lee emphasized the company's aim to minimize operating expenses and pledged that the assets saved would be added to the pool intended for users who have had their funds trapped on the platform since June.
The news of the server suspension has triggered some discontent within the Haru Invest community, with users expressing skepticism about the claimed high server maintenance costs. Many believe that server maintenance should not be a substantial financial burden for the company. Nevertheless, Lee's announcement follows Haru Invest's decision to halt deposits and withdrawals on June 13, 2023, which led to the closure of its offices and the dismissal of dozens of employees. The platform cited fraudulent activities by consignment operator B&S Holdings (formerly Aventus) as the root cause of its issues. However, some concerned investors have raised allegations of a cover-up operation by the company, which Haru Invest vehemently denies.
Hugo Lee appeared in court in September in response to concerns about his recent business restructuring application. He mentioned that Haru Invest is collaborating with investigative agencies to determine a timetable for recovering user assets, which had not been disclosed as of early October. The company is currently facing a class-action lawsuit, along with the major South Korean cryptocurrency platform Delio. The lawsuit stems from allegations of fraudulent activities brought by disgruntled investors.
Please note that while server maintenance costs for small and medium-sized businesses typically range from $35 to $500 per month, the exact amount in the case of Haru Invest has not been disclosed.
