Troubled cryptocurrency firm Haru Invest, which halted withdrawals in June 2023, is considering the suspension of its server to reduce costs. The move raises concerns among users who have been unable to access their funds for months.
Server Shutdown Strategy to Cut Fixed Costs
On October 16, Haru Invest‘s CEO, Hugo Lee, disclosed the firm’s intention to suspend its server operation. Lee pointed out that server maintenance constitutes a significant portion of the company’s fixed expenses. Although a definitive timeline for the suspension is yet to be established, the company aims to back up all member information before proceeding.
Haru Invest is actively seeking ways to trim its operational costs. Aside from server maintenance, the firm is targeting other fixed expenditures, such as office space and communication with members. The CEO assured that these cost-saving measures are intended to safeguard the company’s assets and benefit users waiting for their funds since June 2023.
User Discontent and Cost Debate
The announcement of the server suspension has sparked controversy within the Haru Invest community. Some users question the rationale behind the decision, arguing that server maintenance costs are unlikely to be substantial. Online sources suggest that running a server for a small to medium-sized business typically costs between $35 and $500 per month.
Background and Ongoing Legal Challenges
Haru Invest‘s problems began when it suspended deposits and withdrawals in June, followed by office closures and layoffs. The firm attributed these issues to the fraudulent activities of consignment operator B&S Holdings (formerly known as Aventus). Nevertheless, some investors accused Haru Invest of orchestrating a “rug pull,” a claim the firm denied.
The company’s CEO appeared in court in September as part of corporate rehabilitation proceedings. While promising cooperation with investigating agencies, Haru Invest has not provided a timeline for recovering users’ funds.
Haru Invest and the South Korean crypto platform Delio are facing a class-action lawsuit. Disgruntled investors are alleging “fraud” against both firms. The crypto community continues to watch developments surrounding Haru Invest and its ongoing challenges closely.