Haru Invest Fallout: South African Crypto Platform Says Customers Can Only Access 76% of Crypto Holdings

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The South African crypto platform, Revix, said on June 28 that customers can now only access just over three-quarters (76%) of their crypto assets. Revix said the move to block customers’ access to 24% of their crypto assets was made after one of its primary service providers Haru Invest suspended deposits and withdrawals.

Impact of Haru Invest’s Abrupt Suspension of Deposits and Withdrawals

Revix, the South African crypto investment platform, said on June 28 that it has rendered “24% of crypto asset balances held on the Revix platform as of Tuesday, 13th June, at 02:00 GMT+2 as reserved.” The decision means Revix customers can only withdraw 76% of their crypto assets which are stored on the platform.

In a statement explaining the rationale behind the move, Revix said the unexpected suspension of deposits and withdrawals by one of its primary service providers Haru Invest prompted the decision to reserve 24% of customers’ crypto assets. The statement revealed that “Haru is part of this system and holds a portion of Revix-controlled customer assets.”

Announcing its own decision to suspend deposit and withdrawals services, Haru Invest said the recent discovery of irregularities in management reports submitted by B&S Holdings had compelled it to act. Haru Invest also told its investors and customers on June 14 that it has since filed a criminal complaint against B&S Holdings (formerly Aventus) and would soon follow up with a civil action.

According to reports in South Korean media, Haru Invest’s decision to suspend services has also affected another digital exchange platform Delio. In addition, Korean authorities have imposed travel bans on some executives of B&S Holdings, Delio, and Haru Invest.

Customers Still Have Access to 100% of Fiat Deposits

Meanwhile, in its statement, Revix characterized the decision to suspend the withdrawal of a portion of the customers’ crypto funds as the “most appropriate course of action to best mitigate the obvious adverse impact of this matter.” The exchange platform added:

We have taken rigorous measures to protect them by securely moving all of our customers’ assets into protected internal custody. Customer assets — comprising 76% of their crypto holdings and 100% of their fiat cash balances — are fully accessible to customers whenever needed.

Revix added that the discussions it has had with the Haru Invest team have given it hope that the crypto assets held by the South Korean platform will eventually be recovered.

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