Haru Invest Suspends Servers to Minimize Costs
Haru Invest's CEO, Hugo Lee, announces server suspension to reduce maintenance costs and minimize operational expenses.
Haru Invest's CEO, Hugo Lee, announced on October 16 the company's intention to suspend its server. The primary reason cited was the reduction of server maintenance costs, which, according to Lee, represents the "largest percentage of fixed costs" for the company.
The decision to suspend the server is part of a wider strategy to minimize operational costs. Lee mentioned:
"We plan to suspend the service in a few weeks, backing up all member information."
Haru Invest has been actively seeking ways to reduce its operational expenses. Lee outlined some of the company's fixed expenditures, which include maintaining Haru Invest services, office workspace costs, and communication expenses with members. The overarching goal is to preserve as much of the company's assets as possible, especially considering the funds that have been inaccessible to users since June.
Many users have expressed skepticism about the claimed high server maintenance costs. Comments on Haru Invest's Telegram channel, which has around 3,100 members, reflect this sentiment. One user remarked, "Server costs cost nothing," while another sarcastically commented, "Servers are gone soon guys, huge costs, 200 USD a month." For context, online sources indicate that server maintenance costs for small to medium businesses typically range between $35 to $500 per month.
The server suspension news is just the latest in a series of challenges faced by Haru Invest. In June 2023, the platform ceased deposits and withdrawals. Following this, the South Korean-based firm shut down its offices and laid off numerous employees. Haru Invest attributed its platform issues to the fraudulent activities of consignment operator B&S Holdings, previously known as Aventus. While some investors alleged the firm of executing a rug pull, Haru Invest has refuted these claims.
CEO Hugo Lee appeared in court in September to address concerns related to the company's recent corporate rehabilitation application. He emphasized Haru Invest's collaboration with investigating agencies and the ongoing efforts to establish a timeline for recovering user assets. However, as of early October, no such timeline has been provided. Furthermore, Haru Invest, along with another major South Korean crypto platform, Delio, is reportedly facing a class-action lawsuit, with investors accusing both companies of fraud.