Haru Invest CEO Cleared of $650M Fraud Charges in Seoul Court Ruling

The Seoul Southern District Court delivered a decisive verdict in the high-profile case against Haru Invest CEO Lee Hyung-soo, absolving him of all fraud and embezzlement charges tied to $650 million in investor funds. The ruling marks a pivotal moment for South Korea''s crypto industry, as it distinguishes between business failure and criminal intent.

Prosecutors'' aggressive pursuit of a 23-year sentence collapsed under judicial scrutiny. The court found Haru Invest''s business model fundamentally sound, attributing its 2023 operational suspension to external market shocks rather than deception. This legal clarity could reshape how regulators approach crypto enterprise failures globally.

With BlockCrafters'' co-CEOs also exonerated, the judgment establishes critical precedent: not all crypto collapses constitute fraud. The door remains open for civil claims, but the criminal acquittal signals growing judicial recognition of cryptocurrency market volatility as a distinct risk factor.