1. Criminal Case Closed: Why the Seoul Court Won't Return Your Money Quickly

June 17, 2025, marked a turning point in the Haru case. The Seoul Southern District Court issued a ruling that shocked creditors: Lee Hyung-soo (CEO of Haru Invest) and co-executives of the parent company Blockcrafters were acquitted of fraud charges. As reported by the Korean publication Digital Asset, the judge ruled the withdrawal halt was triggered by force majeure—a liquidity crisis caused by the FTX collapse and the criminal actions of B&S Holdings operator Bang Ki-dok, who forged yield reports, rather than malicious intent by Haru's founders.

The court strictly separated criminal and civil liabilities. For creditors, this means one thing: the state will no longer aggressively search for and seize the founders' personal assets. Now, owners of Haru Invest claims must rely exclusively on the civil bankruptcy process.

"재판부는 피고인들이 폰지 사기 구조로 고객을 의도적으로 기망했다는 결정적인 증거를 찾지 못했다. 유동성 위기는 외부 시장의 실패와 비앤에스(B&S)홀딩스의 행위로 인한 연쇄 효과였다..."
Court Verdict (Seoul, June 2025)
"...the court finds no conclusive evidence that the executives intentionally deceived clients with a Ponzi scheme structure. The liquidity crisis was a downstream effect of external market failures and the actions of B&S Holdings."

2. The Bankruptcy Administrator Trap: How Your Assets Are Burning

In November 2024, Haru Invest officially went into bankruptcy under the Debtor Rehabilitation and Bankruptcy Act of the Republic of Korea. All remaining virtual assets were transferred to a court-appointed liquidator (Haru Invest bankruptcy administrator). Even though the court ordered the process to begin, administrator reports and creditor community reactions show that the virtual asset distribution has turned into an exhausting wait for anyone holding Haru Invest claims.

The main problem with Korean bankruptcy is the cost of the procedure itself. The liquidator must hire independent auditors for blockchain analysis, international lawyers for lawsuits against B&S Holdings, and pay their own staff. All these expenses are deducted directly from the very reserves meant to repay victims. The longer the trial lasts, the less cryptocurrency remains in the estate.

KYC Barriers and Taxes for Non-Residents

Even when the liquidator is ready to distribute the remnants, creditors from the CIS, Europe, and the US will face strict South Korean financial compliance. Withdrawing assets by non-residents from a bankrupt Korean entity will require multi-level KYC, Source of Funds (SOF) proof, and potentially high local tax withholdings. The slightest mistake in paperwork will lead to a permanent freeze of funds.

Timeline Event Impact on Creditor
June 2023 Sudden withdrawal halt (Delio / Haru). Assets completely frozen.
February 2024 Arrest of Haru Invest executives. False hope for a quick refund via criminal court.
November 2024 Official company bankruptcy. Chapter 11 equivalent (Korea) begins. Assets with the Liquidator.
June 2025 CEO Lee Hyung-soo acquitted. Total loss of chances for criminal compensation.
2026 onwards Asset tracing and liquidation. Burning the bankruptcy estate on legal fees. Unknown payout timeline.

3. Institutional OTC Buyout: An Exit from Haru Bankruptcy

While thousands of users wait for micro-tranches that will be eaten up by international fees and procedural costs, large investors are using a legal exit—selling their debt obligations (OTC buyout).

The Assignment of Claim procedure removes the investor from the jurisdiction of South Korean courts. This means you transfer all risks of blockages, compliance, and crypto price drops to an institutional fund in exchange for liquidity "here and now".

Waiting for Liquidator Unknown timeline
Reclaim Strategy USDT/USDC in 72h
Remaining Assets Burning on lawyers
Wait for Liquidator
Passive Scenario
  • Assets frozen in Korean jurisdiction for 2 to 4 years.
  • Risk of significant claim depreciation due to legal costs.
  • Lost profits: your money isn't working in the current crypto market.
  • Risk of payout denial due to complex final-stage KYC.
Reclaim OTC Buyout
Institutional Exit
  • Fair market valuation of your Haru Invest claims.
  • Receive stablecoins to your wallet within 48-72 hours.
  • No hidden fees—the fund covers all legal expenses.
  • Free capital for reinvestment today.

Institutional Haru Invest Claim Assignment Protocol

Step 1 Account Audit (24h) Analysis of balances and claim status. Asset purity check.
Step 2 Assignment Agreement Drafting the offer and signing the claim assignment contract.
Step 3 Liquidity Payout Notifying the administrator and instant USDT/USDC payout to your wallet.

Ready to unfreeze your Haru Invest assets?

Stop losing time and money on endless courts. Contact us—we will evaluate your Haru Invest claims and help file all necessary documents if you want to get paid faster.

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Frequently Asked Questions (FAQ) - Haru 2026

Is it true that the Haru Invest CEO was completely acquitted?
Yes. The Seoul Southern District Court ruled that Lee Hyung-soo's actions (CEO Haru Invest acquitted) did not constitute intentional fraud. This means he will not face criminal penalties, but the company is still obligated to compensate for damages through the civil bankruptcy process, which is moving extremely slowly.
When will the bankruptcy administrator start payouts (virtual asset distribution)?
There are no exact dates at the moment. The process of collecting and liquidating assets by the Haru Invest bankruptcy administrator could take 2 to 4 years. Meanwhile, the final payout amount will be significantly reduced due to procedural costs (paying auditors and lawyers from the creditors' pool).
How does the claim buyout process work?
Everything is completely transparent: we audit your account and offer a current buyout price for your Haru Invest claims. If you agree, you sign an Assignment of Claim agreement, we officially notify the Korean administrators, and send you the crypto. From that moment, we take over the litigation for your former assets, and you are completely free from the bureaucracy.

This material was prepared by Reclaim Capital experts. We specialize in distressed asset management in complex bankruptcy procedures.

Please note: this publication is strictly for informational and analytical purposes, based on public documents from South Korean courts. We are not affiliated with Haru Invest, Blockcrafters, or the appointed bankruptcy administrator.

Contact us on Telegram: @ReclaimCapital