South Korean prosecutors have arrested the CEO and two other executives of Haru Invest for allegedly embezzling over $828 million worth of cryptocurrency from 16,000 customers.

Haru Invest, which offered high-interest rates on crypto deposits, halted customer withdrawals in June 2023 and subsequently laid off 100 employees.

Investors, including a company named Delio, have initiated a class-action lawsuit demanding transparency in the ongoing investigations and efforts to recover lost assets.

The investment platform is under suspicion of conducting a 'rug pull' scam, raising serious concerns about the reliability of cryptocurrency investment platforms and sparking debates on the need for regulatory oversight.

The South Korean legal system is actively working to uncover the full scope of the alleged fraud and to facilitate the restitution of the embezzled funds.