After a few months of ceasing withdrawals in June 2023, crypto platform Haru Invest intends to shut down its server to reduce server maintenance costs.
Hugo Lee, CEO of Haru Invest, announced on October 16 that the company is contemplating closing down its server to reduce server maintenance expenses. The CEO emphasized that server maintenance represents the “largest percentage of fixed costs” at Haru Invest and is a top priority for the organization.
“We plan to suspend the service in a few weeks and back up all member data,” Lee wrote in the announcement, adding that the company lacks a “definite plan” for the server shutdown.
According to the company’s chief executive, Haru Invest is “actively devising various strategies” to reduce all costs associated with operating its services. “Current fixed expenses include the maintenance of Haru Invest’s services, the cost of office space, and the cost of communicating with our members,” Lee explained.
The CEO stated that Haru Invest intends to reduce its operating expenses further to preserve as many of its assets as feasible. In addition, he promised that these assets will be added to those assets that will be distributed to users whose funds have been trapped on the platform since June.
The suspension news has caused discontent in the Haru Invest community, with many users contending that server maintenance probably does not cost the company a fortune.
“Server costs cost nothing,” a dissatisfied user wrote on Haru Invest’s Telegram channel, which has approximately 3,100 users.
Another Telegram user remarked sarcastically, “Servers are going away soon, huge costs, $200 a month.” According to online sources, the monthly server maintenance costs for a small to medium-sized business range from $35 to $500.
A few months after Haru Invest terminated deposits and withdrawals on June 13, 2023, Lee announced the impending suspension of the server. Local news agencies reported that the South Korean company closed its offices and dismissed dozens of employees.
Haru Invest asserted that consignment operator B&S Holdings, formerly Aventus, was responsible for the problems on its platform. Concerned investors have accused Haru Invest of orchestrating a “rug pull,” but the company has denied the allegations.
In September, the company’s CEO appeared in court to address concerns regarding the company’s recent application for corporate rehabilitation. Lee stated that Haru Invest collaborated with investigating agencies and established a timeline to recover user assets. Haru Invest has not provided a timeframe for recovering the funds since early October.
Unsatisfied investors have reportedly filed a class action lawsuit against Haru Invest and the major South Korean cryptocurrency platform Delio, accusing the companies of “fraud.”
