Struggling crypto yield investment platform Haru Invest (Haru) is mulling switching off servers to cut costs. The company wants to lower overhead costs until it can reimburse its customers amid bankruptcy proceedings.
According to Hugo Lee, the Haru CEO, the investment company will back up its server to avoid losing customer information. Communication systems critical to facilitating a smooth transfer of customer assets will be kept on as long as possible.
Haru Delays Cutting Communication Costs
Lee confirmed in an announcement dated Oct. 16:
“We expect to continuously incur the cost of communication with members until we distribute members’ assets (although it is difficult to predict when it will be), so our plan is that this should be the last item to save on.”
He added that the company would inform customers when the cost-reduction plans become clearer. Earlier this year, the company fired 100 employees as it sought to cover costs arising from legal disputes.
The company served customers in 140 countries before suspending withdrawals on June 13. Lee later revealed that Haru was pursuing legal action against B&S Holdings, a service provider it argues was the reason for the suspensions.
Read more: Understanding How Yield Farming Works (Beginner’s Guide)
Its asset-freezing affected Delio Investments, a South Korean lender that chose to invest customer money in Haru. Following the suspensions, a group of Haru customers filed a class-action lawsuit, accusing the platform of conducting risky trades and abusing customer funds.
Frustrated Haru Customers Fume at Delays
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Author: David Thomas
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