TLDR:
- South Korean crypto CEO Hugo Hyungsoo Lee stabbed during fraud trial
- Lee accused of embezzling $826 million from 16,000 customers
- Attacker was a former Haru Invest customer
- Incident occurred weeks after new crypto investor protection law enacted
- Lee’s injuries reported as non-life-threatening
On Wednesday, a shocking incident unfolded in a Seoul courtroom when Hugo Hyungsoo Lee, the CEO of cryptocurrency firm Haru Invest, was stabbed multiple times in the neck during his trial for alleged fraud.
The attack occurred as Lee faced charges of embezzling approximately $826 million from around 16,000 customers.
According to local media reports, the attacker was described as a man in his 50s and a former customer of Haru Invest. The assailant suddenly sprang up from the guest seat and attempted to stab Lee with a small knife.
Lee was immediately rushed to the hospital, with his injuries reported as non-life-threatening.
The trial stems from allegations that Lee and two other Haru Invest executives misappropriated customer deposits between March 2020 and June 2023.
Prosecutors claim the company falsely advertised that they were “operating stably using a risk-drive diversified investment technique” while offering annual interest rates of up to 12% for digital asset investments.
The situation came to a head in June 2023 when Haru Invest suddenly suspended cryptocurrency withdrawals without notice. This action led to the arrest of three top executives, including Lee, in February 2024. Lee was later released from custody in July, ahead of the trial.
The incident occurred just weeks after the country enacted its first comprehensive law aimed at protecting crypto investors.
The “Virtual Asset User Protection Act,” which came into force in July 2024, was designed to address regulatory shortcomings in the crypto industry.
The law targets unfair trading practices and aims to provide greater market oversight. It also grants increased authority to the Financial Services Commission to supervise and sanction virtual asset service providers.
This new legislation replaced an earlier 2021 ruling that the FSC acknowledged had limitations in responding to various types of unfair transactions. The updated law is intended to more effectively supervise crypto service providers and assist victims with relief measures.
