Crypto CEO Cleared in $650M Fraud Case—Months After Surviving Stabbing Attack

Justice takes a wild turn as crypto exec walks free from nine-figure fraud charges—just months after a near-fatal stabbing.

Talk about a plot twist even Hollywood wouldn''t buy: The same CEO who made headlines for getting shanked now dodges financial ruin. Where''s the movie deal?

Prosecutors dropped the hammer... then dropped the case. Meanwhile, retail investors are still waiting for their ''get out of jail free'' cards.

Another day, another crypto scandal that somehow makes traditional Wall Street crooks look almost honorable. Almost.

Court Finds Lack of Criminal Intent Amid Broader Market Fallout

The court determined that while there was managerial failure, Lee’s actions did not fulfill the criteria for criminal deception under South Korean law. The judgment referenced external factors such as the collapse of the FTX exchange and subsequent crypto market turbulence, which contributed to Haru’s inability to meet investor obligations.

According to report, the court supported Lee’s claim that Haru’s business model involved legitimate investment strategies and generated real profits, distinguishing the case from deliberate Ponzi-style operations.

Co-CEOs of Blockcrafters, identified only by their surnames Park and Song due to South Korean privacy norms, were also acquitted of fraud charges. Kang, Blockcrafters’ chief operating officer, was cleared of fraud but found guilty of embezzlement and sentenced to two years in prison.

The verdict leaves open the path for civil litigation, as the court emphasized that the ruling only pertains to criminal liability and does not absolve the defendants from financial accountability to affected investors.

In a separate but related incident, Lee was physically attacked during court proceedings in August 2023 by an individual claiming to have lost 100 BTC, worth millions of dollars, in Haru’s failed investment platform.

The attacker was sentenced to five years in prison in April 2024. Lee survived the stabbing with non-fatal injuries and has continued to maintain that he is working toward compensating victims through bankruptcy recovery efforts.

Wider Implications for South Korea’s Crypto Regulation

The outcome of the Haru Invest case may influence future legal interpretations of crypto fraud in South Korea, especially in cases where business failure is driven by external market shocks rather than intentional deception.

South Korea has been actively updating its regulatory stance on digital assets, and this high-profile ruling may prompt further legal clarification around custodial responsibilities and investor protection in the crypto industry.

Lee’s acquittal, while relieving him of criminal charges, leaves unresolved concerns for thousands of investors still awaiting compensation. The bankruptcy proceedings and potential civil lawsuits will likely continue to shape the aftermath of one of South Korea’s most significant crypto collapses to date.

Featured image created with DALL-E, Chart from TradingView