Haru Invest, a high-yield crypto investment company based in Singapore, has broken its silence over rumors that it has rug-pulled investors. This development followed the company’s decision to indefinitely suspend deposits and withdrawals due to a problem with one of its service partners.
Haru Invest’s Official Statement
The company took to Twitter in the early hours of June 13th to announce the suspension of its services. Haru Invest explained that it was grappling with an unspecified issue from one of its service partners. At the time, the company maintained that the pause was necessary for the protection of user assets under its custody. Their statement reads:
“For the purpose of protecting our users’ assets under our custody, we have come to make a tough decision that any deposit and withdrawal requests will be suspended until further notice, starting from June 13, 2023, at 0:40 UTC.”
Operations Resume and Addressing Rumors
Later in the day, the Haru Invest team updated via Twitter that operations had resumed at their offices. They assured investors that they had not orchestrated a rug pull, and they promised to release more updates soon.
The Surge of Scams in CeFi and DeFi Ecosystems
The recent surge in scams and rug pull attacks in the centralized finance (CeFi) and decentralized finance (DeFi) ecosystems has been a cause for concern, leading to a call for more robust regulatory frameworks across different jurisdictions.
Last month, the Dubai Financial Services Authority (FSA) echoed the sentiment, urging for more strategic collaborations between regulatory watchdogs globally to fight against crypto-related scams.
Conclusion: The Need for Investor Trust and Industry Regulation
The rumors around Haru Invest’s service suspension demonstrate the inherent need for trust and transparency in the evolving crypto investment space. By swiftly addressing the rumors and keeping their investors informed, Haru Invest showcases its commitment to maintaining this trust.
Moreover, the frequent occurrences of scams and rug pulls in both the CeFi and DeFi ecosystems further underline the urgent necessity for robust regulatory frameworks. As suggested by the Dubai FSA, strategic collaborations between regulatory bodies across various jurisdictions could be a significant step in curbing these malpractices and creating a safer environment for investors.
As the industry continues to grapple with these issues, Haru Invest’s recent actions serve as a timely reminder for all crypto investment platforms to prioritize investor trust and transparency in their operations.