Hugo Lee, South Korean Crypto CEO, Stabbed In Neck While On Trial For Alleged $800m Fraud

Hugo Lee, CEO of South Korean crypto firm Haru Invest, was stabbed during the crypto trial by a disgruntled former customer on Wednesday (28 August) while attending his trial for a fraud case totaling over $800 million.

NEW: 🇰🇷 The CEO of Haru Invest, a South Korean crypto yield platform, was stabbed during a court hearing.

Hugo Lee was stabbed in the neck four times and is in critical condition, according to local reports. Following the attack, Lee was reportedly seen bleeding on the… pic.twitter.com/FYDoPhSXPU

— DΛVID 🟢 (@DavidShares) August 28, 2024

Hugo Hyungsoo Lee was stabbed numerous times in the neck by an as-of-yet-unnamed man and was immediately taken to hospital for treatment. It is being reported that the injuries sustained by Lee were not life-threatening.

The attacker, described as being in his 50s, was reportedly a disgruntled former customer of Haru Invest.

Haru Invest CEO Sustains Non-Life Threatening Injuries After Being Stabbed In The Neck Multiple Times

The ongoing trial is a high-profile one for crypto in South Korea. Before the attack on Mr Lee, the case had already gained much attention.

One was due to the large amount of money involved. However, it also came at a time when South Korea’s laws and regulations were being updated to protect consumers.

RELATED: South Korea’s Mandatory New Laws For crypto exchanges Have Kicked In

Lee was among three executives arrested for fraud in February 2024. The charges against the trio include embezzlement of more than 1 trillion won (over $750 million) in digital assets.

All three executives are accused of receiving deposits from around 16,000 customers between March 2020 and June 2023. The deposits were then invested whole, while at the same time, the firm falsely advertised that it was “operating them stably using a risk-drive diversified investment technique.”

At that time, Haru Invest was advertising annual interest rates of up to 12% for digital asset investments to its customers. From June 2023 onwards, crypto withdrawals on the platform were suspended without notice.

Since The Alleged Fraud Carried Out By Haru Invest, South Korea Has Passed New Laws To Protect Consumers

South Korea.
July 19th, 2024.
Virtual Asset User Protection Act.
Strengthened crypto exchange regulations.

That's it. That's the tweet. pic.twitter.com/hlDEQyizJW

— Brian Hong (@brianjhhong) July 1, 2024

The Korean government passed a law in June 2023 after being concerned about the lack of consumer protections in the crypto industry. The law guarantees the protection of users’ assets. It was approved 13 months later, in July 2024.

The law, dubbed the “Virtual Asset User Protection Act,” also aims to regulate unfair transaction activities while providing greater market oversight. It also gives the Financial Services Commission (FSC) of South Korea authority.

It replaces an earlier law from 2021 that the FSC had acknowledged its limitations regarding authorities being unable to act on what the commission deems as “various types of unfair transactions.”

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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.