Haru

Haru deployed deposited digital assets into market-neutral algorithmic strategies, primarily futures basis trades, funding-rate arbitrage, and cross-exchange spread capture. The firm offered floating-rate products through its Haru Earn platform and marketed estimated annual percentage yields that varied by asset and lockup term. It described these strategies as delta-neutral and institutionally risk-managed, but the specific trading venues, counterparties, and custody arrangements were never fully disclosed to depositors.

Haru announced the suspension of deposits and withdrawals on June 13, 2023, citing a counterparty incident involving what it described as a fraudulent management report from a consignment operator. The firm subsequently stated it had discovered significant misrepresentations about the operator's internal controls and asset holdings. This counterparty default cascaded into a broader liquidity crisis that prevented Haru from meeting redemption requests.

Yes. Haru filed for corporate rehabilitation in a South Korean court following the withdrawal suspension. The rehabilitation process evaluates creditor claims and proposes a restructuring plan; the firm has publicly communicated that it expects recoveries to fall below 30% of deposited asset values. Parallel criminal investigations into company executives, including allegations of fraud, have also been reported in South Korean media.

Haru was incorporated in Singapore with an operational office in Seoul, but it does not appear to have held a major financial services license in either jurisdiction for its core yield products. The firm's marketing materials emphasized institutional-grade risk controls and segregated custody at third-party custodians, but its regulatory status was ambiguous. The absence of clear regulatory backstops became a central issue for depositors after the 2023 withdrawal freeze.

Haru was a centralized platform — it took custody of client assets and deployed them at its own discretion into trading strategies, unlike DeFi protocols where smart contracts execute transparently on-chain. Users relied on Haru's internal treasury management and risk controls rather than on auditable protocol code. This centralization allowed Haru to offer fixed-rate, fiat-denominated return expectations but also concentrated counterparty and operational risk inside a single corporate entity.

Haru's trading and asset-allocation decisions were managed by an internal investment team reporting to CEO Hugo Lee. The firm did not publicly name a separate chief investment officer or independent risk committee. The concentration of strategic and operational authority in a small group of Singapore- and Seoul-based executives limited external visibility into how client funds were being deployed.

Haru's Seoul office became the focal point of the legal and rehabilitation process, as a significant portion of the firm's depositor base and operational staff was located in South Korea. South Korean authorities launched investigations into whether the firm and its executives violated local financial regulations or committed fraud. A rehabilitation proceeding in a Seoul court governs the ongoing effort to value and distribute remaining assets.