The South Korean court ruled that Haru Invest executives are not guilty of fraud, emphasizing that it does not affect civil liability for damages

ChainCatcher news, according to The Block, the Southern District Court of Seoul in South Korea has acquitted Haru Invest CEO Lee Kyung-soo of fraud charges. The company had suddenly suspended user withdrawal functions in June 2023, resulting in losses of $650 million for approximately 6,000 investors.

The court found that although there were management negligence issues within the company, Lee Kyung-soo's actions did not meet the legal standards for fraud under criminal law. The suspension of withdrawals was primarily related to the liquidity crisis triggered by the bankruptcy of FTX. The two co-CEOs of Haru Invest'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 exempts the defendants from criminal liability and does not affect their civil liability to the victims.