South Korean Crypto Yield Firm Haru Invest Fires More Than 100 Employees: Report

South Korean crypto yield platform Haru Invest is terminating contracts for more than 100 employees, CoinDesk Korea reported Thursday. The platform paused withdrawals and deposits earlier this month, citing issues with service partners.

"Due to the recent situation, normal company management is difficult. I made that decision," CEO Lee Hyung-soo reportedly said on a video call notifying employees of the changes on behalf of parent company Block Crafters.

The contracts for more than 100 employees are set to end on Friday, according to the report.

In a June 20 letter, Lee said Haru Invest was taking legal action against renewable energy company B&S Holdings "for fraud, embezzlement, and other allegations," adding that the company "is considered the root of the issue."

In a Wednesday blog post, the platform said that "after much consideration, it comes with a heavy heart to inform you that we will be minimizing the operations of Haru Invest and its affiliated companies to prevent further damages that are likely to be incurred."

After the platform halted withdrawals on June 13, local media reported that Haru Invest’s office in Seoul was empty because, according to Lee, employees were working from home for their own safety. After pausing withdrawals, the firm closed the office, and all company officials disappeared, CoinDesk Korea reported Thursday.

Co-founder and former CTO Eunkwang Joo had previously said on Twitter that although "Haru Invest had an internal situation, it is not a situation where they are maliciously trying to do a rug pull."

Read more: South Korean Crypto Yield Platform Haru Invest Pauses Withdrawals and Deposits

Update (June 22, 11:42 UTC): Adds legal action in fourth paragraph, Wednesday blog post saying it was minimizing operations in fifth.