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$650M Crypto Fraud Charges Dropped: CEO Acquitted Months After Stabbing Incident
- A South Korean court has acquitted Lee Hyung-soo, CEO of Haru Invest, of criminal fraud charges related to mismanagement of investor funds exceeding $650 million.
- The court ruling followed the sudden freeze of customer withdrawals and shutdown of Haru Invest in mid-2023, sparking intense scrutiny from prosecutors and investors.
- Lee and others were accused of misrepresenting investment risks and offering high returns, with around 6,000 investors reportedly affected by damages estimated at $650 million.
- The prosecution sought a 23-year prison sentence for Lee, but the court found no criminal intent, attributing the situation to external factors like the FTX exchange collapse.
- The court supported Lee's claim of legitimate investment strategies and real profits, distinguishing the case from deliberate fraud.
- Co-CEOs of Blockcrafters were also acquitted of fraud charges, while the chief operating officer was found guilty of embezzlement and sentenced to two years in prison.
- The ruling allows for civil litigation as the court specified that criminal liability does not absolve defendants from financial accountability to affected investors.
- The verdict may impact future interpretations of crypto fraud in South Korea, potentially influencing regulatory measures in the digital asset space.
- While Lee's acquittal clears him of criminal charges, concerns persist for investors awaiting compensation through bankruptcy proceedings and potential civil lawsuits.
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