CEO Acquitted of $650 Million Fraud Months After Courtroom Stabbing

A Seoul court reportedly cleared Haru Invest CEO Lee Hyung-soo of fraud charges involving approximately $650 million on June 17, 2025, nearly ten months after he was stabbed during the trial.

Seoul Southern District Court found Lee not guilty of defrauding investors despite prosecutors alleging that Haru Invest executives diverted roughly ₩880 billion ($646 million) in customer assets. The platform halted withdrawals in June 2023 amid wider crypto market turmoil.

Court Cites Negligence, Not Criminal Intent

The court concluded that while management may have been negligent in handling operational risks, the evidence did not meet the threshold for criminal fraud under South Korean law. The court stated that while the company was negligent, this did not meet the legal standard for criminal deception.

Lee's defense argued that external events including market shocks and partner bankruptcies caused the service suspension and losses, rather than deliberate deception. The court found insufficient evidence proving intent to deceive investors or that operating capital shortfalls amounted to deliberate fraud.

Other executives named alongside Lee were also acquitted of fraud charges in the same ruling. However, one executive was found guilty of embezzlement and received a suspended sentence with probation and community service.

Violent Attack During Trial

Lee was stabbed in the neck during his fraud trial in August 2024 by an individual claiming to be a victim of platform losses. His injuries were not life-threatening and the attacker was arrested at the scene. The incident highlighted tensions among investors who suffered when Haru Invest halted operations.

The case has drawn attention as South Korea tightens oversight of digital asset services and examines liability standards for platform operators.

Related: South Korean Crypto Exchanges Conduct Stress Tests for Crises