Haru Invest, a troubled cryptocurrency platform, has announced plans to suspend its servers in an effort to reduce maintenance costs. The decision comes after the platform halted withdrawals in June 2023. The CEO of Haru Invest, Hugo Lee, made the announcement on October 16, stating that server maintenance costs account for the largest percentage of fixed costs at the company.
Lee emphasized that the firm is actively working on strategies to lower all costs associated with operating its services. This includes reducing the cost of workspace, communication with members, and the upkeep of Haru Invest services. The CEO stated that the goal is to maintain as many of the company’s assets as possible, which will be distributed to users who have had their money stuck on the platform since June.
While Lee’s announcement was intended to address the financial challenges faced by Haru Invest, it has sparked discontent among users. Some argue that server maintenance costs are not as significant as claimed by the CEO. One user comments sarcastically on Haru Invest’s Telegram channel that server costs amount to $200 per month, while online sources state that the maintenance costs for a small to medium-sized business can range between $35 to $500 per month.
This news of the server suspension follows Haru Invest’s previous decision to terminate deposits and withdrawals in June 2023. The South Korean firm subsequently closed its offices and laid off numerous employees. Haru Invest attributed the issues on its platform to fraudulent activity by consignment operator B&S Holdings, formerly known as Aventus. However, some investors have accused the company of orchestrating a rug pull, which Haru Invest denies.
In September, CEO Hugo Lee appeared in court to address concerns over the company’s corporate rehabilitation application. Lee stated that Haru Invest is cooperating with investigating agencies and working towards recovering users’ assets. As of early October, the platform has not provided a timeline for asset recovery.
Haru Invest is also facing a class-action lawsuit along with South Korean crypto platform Delio. Investors have accused both companies of fraud. The outcome of the lawsuit remains to be seen.
Overall, Haru Invest’s decision to suspend its servers as a cost-cutting measure demonstrates the financial challenges the platform is currently facing. Users are concerned about the impact of this move and remain skeptical about the claimed magnitude of server maintenance costs. The future of the platform and the recovery of users’ funds still hang in the balance.