South Korean Crypto CEO Stabbed During Court Hearing in Fraud Case

In a shocking incident, the CEO of a cryptocurrency company in South Korea was attacked during a court session in Seoul, marking a troubling escalation in physical violence related to the crypto industry.

The target of the attack was Hugo Hyungsoo Lee, who heads Haru Invest, a company focused on crypto-earning solutions. Lee was assaulted within the courtroom while the trial was addressing allegations that three executives from Haru Invest embezzled approximately $826 million from around 16,000 users.

Reports from local sources reveal that the attacker, a man in his 40s and a victim of the alleged fraud, unexpectedly lunged from his seat and attempted to stab Lee in the neck with a small knife. Following the assault, Lee was quickly transported to a medical facility for treatment.

Haru Invest suspended withdrawals on June 13, 2023. The following day, Delio, a management firm holding assets with Haru Invest, also paused withdrawals.

The Haru Invest Fraud Case Overview

The fraud case against Haru Invest has seen South Korean prosecutors bring charges against three top executives for the alleged theft of digital assets valued at roughly $826 million from their clients.

Lee was subjected to an investigation regarding the suspension of deposits and withdrawals in June 2024.

In February 2024, authorities arrested three Haru Invest executives, including Lee. Prosecutors claim that these executives misused the majority of customer deposits by reinvesting them unlawfully from March 2020 through June 2023. They allegedly misled clients by promoting Haru as a stable business that employed “risk-free diversified investment strategies.”

Lee was later released from custody in July, just prior to the commencement of the trial.

Emergence of Physical Crimes in Crypto

While cybercrimes had been the primary concern for cryptocurrency users, there has been a troubling rise in physical assaults linked to digital assets.

On August 4, a group of four Chinese individuals invaded a secured community in Pathum Thani, Thailand, and forced a victim to transfer $2 million worth of cryptocurrency at gunpoint.

In July, four men kidnapped a foreigner in Kyiv, Ukraine, known to possess Bitcoin (BTC). They compelled the individual to transfer 3 Bitcoin to their wallets before inflicting harm.

This trend follows an incident on June 17 in London, where three armed individuals invaded a home using machetes and coerced the resident into transferring 1,000 Ether (ETH) valued at over $2.5 million. Fortunately, the homeowner was unharmed physically during the ordeal.