South Korean Prosecutors Seek 10-Year Prison Term for Haru Invest CEO Attacker

South Korean prosecutors have urged the court to impose a 10-year prison sentence on a man who attacked the CEO of Haru Invest, a local cryptocurrency custody firm, during a court hearing in August 2024. The Seoul Southern District Prosecutor’s Office made the request on Wednesday during the case’s final hearing, emphasizing the seriousness of the offense.

The 51-year-old defendant, identified by his surname Kang, stabbed Haru Invest CEO Lee Hyung-soo multiple times in the neck using a concealed 20 cm knife. Lee was promptly taken to a hospital but survived without life-threatening injuries.

Kang’s Attack

The attack took place during Lee’s trial on fraud charges. Prosecutors allege that Lee was involved in a scheme that defrauded about 16,000 individuals in South Korea and abroad, resulting in losses of around $826 million.

Among those affected was Kang, who reportedly lost 100 BTC—worth about $8.3 million—after depositing the funds into Haru Invest, according to a local media outlet.

During Wednesday’s court session, Kang’s legal representative argued that the emotional distress caused by the financial loss led Kang to act impulsively. The defense emphasized that Kang’s actions were not premeditated.

In a prior court hearing last December, Lee stated that he needed time to decide whether he would support legal action against his attacker. He also mentioned that efforts were underway to recover lost funds through bankruptcy.

Notably, the court is expected to deliver its verdict on Kang’s sentencing on April 4.

Haru Invest’s Collapse

According to prosecutors, Haru Invest allegedly promised full principal repayment with interest rates as high as 16% despite operating at a financial deficit since 2019. The firm halted deposits and withdrawals on June 13, 2023, before filing for bankruptcy in November.

Following the collapse, users were blocked from adding more digital assets, and the company laid off roughly 100 employees. Meanwhile, South Korean authorities are investigating Delio, a cryptocurrency lending firm linked to Haru Invest, after both companies abruptly froze withdrawals in 2023.