Crypto yields platform Haru Invest has revealed plans to suspend its server as a cost-saving measure amid a fallout with one of its service partners.
This new development comes a few months after the company suspended deposits and withdrawals in June 2023.
The company’s CEO, Hugo Lee, made the announcement in an official post.
According to Lee, Haru Invest is exploring multiple strategies to decrease operational expenses.
These expenses border on various fixed costs. It includes the upkeep of Haru Invest services, office space expenditures, and the costs associated with user communication, including translation and individual emails.
In light of this, Lee expressed the commitment of the company to further lower these expenses to preserve as much of its assets as possible, which will eventually be distributed to the members.
While Haru Invest anticipates ongoing communication costs with customers until the asset distribution takes place, the exact timeline for this distribution remains uncertain. As such, the company’s priority is to minimize overall expenses.
However, Lee emphasized that server maintenance expenses constitute the largest portion of Haru Invest’s fixed costs, making it a top priority for the company.
Consequently, there is a planned temporary service suspension in a few weeks, with preparations underway to back up all member information, including asset data, in anticipation of future asset distribution plans.
However, Lee pointed out that specific plans in this regard are yet to be finalized, and they will provide further updates to clients as the situation becomes clearer.
Haru Invest Points Fingers At Partner For Firm’s Troubles
With its headquarters in Singapore, Haru Invest operates as a centralized financial digital asset management platform.
The cryptocurrency yield firm has come under increased scrutiny following a withdrawal suspension, attributing the issue to problems with a service partner.
In a blog post published on June 14, 2023, Haru Invest announced its intentions to take legal and criminal action against its partner B&S Holdings to safeguard its users.
B&S Holdings, formerly known as Aventus, operated as a consignment operator.
According to the blog, Haru Invest accused the company of submitting fraudulent management reports containing “false information,” deceiving both the company and its users.
However, the crypto yield firm has failed to provide substantial updates, leaving many users concerned about the lack of transparency and communication.
Further, this recent announcement to suspend the servers has raised even more concerns among users unable to withdraw funds since June.
Some disgruntled customers have resorted to name-calling on social media platforms.
The latest development will likely undermine trust in the platform and cause doubts about its long-term viability.
Nonetheless, CEO Lee has stated that the company is actively cooperating with investigative agencies in the civil and criminal actions against B&S Holdings, working tirelessly to expedite the necessary procedures.
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