Report: Troubled Korean Cryptocurrency Earnings Platform Lays Over 100 Employees

CEO Lee took the decision himself, citing the current turbulent state of the company.

Haru Invest, a South Korean platform offering multiple cryptocurrency investment options, will reportedly lay off more than 100 employees. The layoffs will take effect on June 23.

The decision comes days after the company suspended deposits and withdrawals due to a problem with one of its service providers.

According to recent reports, Haru Invest has terminated the contracts of more than 100 employees. They got the news from CEO Lee Hyung-soo over a video conference.

"Due to the recent situation, the normal management of the company has encountered difficulties. I have made this decision," he said.

Haru Invest's sudden problems began in mid-June when it encountered "certain issues with one of its service partners". As such, it suspended withdrawals and deposits on the platform to ensure maximum protection for customers.

The company issued another announcement earlier today, saying it would "minimize" its operations and that of its affiliates to prevent further losses following legal action against B&S Holdings.

The executive team has vowed to communicate any changes in the situation going forward and provide staff with all necessary assistance.

“We are currently looking for the best platform to communicate with you about our operations. Once a decision is made, we will let you know. We will respond to those who reached out to us.”

Haru Invest’s problems appear to have caused a domino effect in South Korea, as leading crypto lending platform Delio also halted withdrawals. The latter insisted that the measure was taken because of exposure to the former.

Delio later revealed that it would restore service in stages, but did not provide a specific date.