South Korean cryptocurrency CEO Hyung-soo “Hugo” Lee was stabbed in the neck during his fraud trial on Thursday, causing a major disruption in the courtroom. According to reports, the attack occurred when a 51-year-old man, identified only as Mr. Kang, smuggled a knife into the court and waited for Lee to take the stand before rushing forward and stabbing him multiple times. Lee was immediately taken to the hospital, where his injuries were described as non-life-threatening.
The incident has drawn attention amid other controversies in the cryptocurrency world.
Lee reportedly collapsed, bleeding, following the attack, while Kang was swiftly detained by the Seoul Yangcheon police on charges of attempted murder. Authorities are investigating Kang’s motives, with some reports suggesting that he may have been a victim of Lee’s cryptocurrency platform, Haru Invest, though this connection has not been officially confirmed.
Haru Invest, a crypto investment platform, gained popularity by offering high-yield products but soon faced allegations of financial mismanagement. In June 2023, the platform abruptly froze all withdrawals, citing unspecified issues with a service partner. The company announced it was investigating the matter and working on contingency plans to protect user assets, but no further details were provided. The statement was later removed from its website, leaving many investors in a state of uncertainty.
Local media reports reveal that Haru Invest promoted its offerings as “risk-free arbitrage,” suggesting a diversified investment strategy. However, it appears that 70 to 90 percent of its assets were placed with a single investor, Bang, who has been linked to the collapse of another crypto platform, Delio, and is currently under arrest.
Most employees at Haru Invest were primarily involved in attracting customers through web design, public relations, and office décor rather than managing investments.
Executives at Haru Invest are facing accusations of defrauding over 16,000 customers out of ₩1.4 trillion ($1.05 billion) by falsely guaranteeing principal amounts and promising returns of up to 16 percent per year. The company’s abrupt shutdown and withdrawal freeze left many investors in financial distress, and legal proceedings are ongoing to determine the extent of any wrongdoing.
