Haru Invest Faces Rehabilitation Hearing; Hugo Lee Clears Air on Asset Distribution
Jessie A Ellis Sep 09, 2023 12:16
Haru Invest CEO Hugo Lee has raised concerns over the company's corporate rehabilitation application, stating it doesn't represent all members' interests and doesn't benefit Haru Invest or the targeted entity. He plans to prioritize asset recovery from other management companies for member distribution.
Haru Invest's Hugo Lee appeared in court on Thursday, September 9, 2023, to address concerns over the company's recent corporate rehabilitation application. The move has garnered significant attention, casting doubts over the company's intentions and its commitment to its members.
Lee emphasized that the rehabilitation application "does not represent the interests of all members." Reaffirming his commitment, he stated that both he and Haru Invest aim to retrieve members' assets "to the greatest extent possible" from the asset management company and distribute them equitably among all members.
A critical distinction was made regarding the entities targeted in the rehabilitation application. Lee explained that these corporations did not directly operate Haru Invest services, hence they "do not hold a real benefit for rehabilitation for lacking any residual value, including assets."
The CEO used an earlier rehabilitation questioning in August as an opportunity to communicate more detailed facts and potential future plans to Haru members. Amidst the uncertainties surrounding asset distribution, Lee clarified that apart from assets from B&S Holdings, the company intends to prioritize asset recovery from other management companies for member distribution. However, ongoing investigations into both B&S Holdings and Haru Invest itself have stymied efforts to establish a clear distribution timeline.
Addressing concerns over the assets under B&S Holdings, Haru Invest stated that the "situation is not allowing us to arbitrarily determine the possibility of recovery." The primary objective remains to maximize recovery of assets in collaboration with investigative agencies. Lee underscored the importance of B&S Holdings' proactive involvement in these investigations for the benefit of Haru's members.
With the cooperation of investigative agencies, Haru Invest aims to draft a more precise timeline for asset distribution in light of the ongoing investigations. Lee concluded his announcement by expressing empathy for the challenges faced by Haru members and reassured them of continued efforts to ensure a fair distribution of assets.
Blockchain.News has been closely following the Haru Invest saga. In August 2023, CEO Hugo Lee responded to member concerns, reiterating the firm's dedication to asset recovery and negating any evasion of responsibility. He further criticized the proposed rehabilitation procedure as unsuitable for broad asset distribution.
Earlier, in June, Haru Invest, grappling with a turbulent crypto market, paused new deposits and investments. By June 15, legal proceedings commenced against B&S Holdings over alleged malfeasance. Lee then pledged open communication and corrective measures on June 20.
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