Dear Haru Invest Members,
This is Haru Invest, Hugo Lee. I would like to update you on this week’s work progress.
Please accept our sincere apologies, as we expect that it will take considerable time to remedy the situation despite our users experiencing a great deal of hardships.
Haru Invest and I will do everything we can to shorten the time it takes by even a day.
1. B&S Holdings investigation progress: Continuing from last week, we have not received any further updates since the investigation agency’s seizure and search of B&S. Haru Invest, and I are planning ahead to timely provide the necessary support for the investigation.
2. Progress of recovering assets under management: We are still retrieving external partners’ matured assets. We are proceeding with the retrieval according to the established timeline, and, as I informed you earlier, we are making efforts to minimize the loss due to the urgent retrieval.
3. Progress of corporate asset sale: We have compiled a list of sellable corporate assets and are investigating the feasibility of a phased sale. We plan to liquidate in accordance with the lawful procedure where and when the sale is achievable. We recently discovered, however, that some of our users initiated Haru Invest’s rehabilitation procedure through the court, and Haru Invest and I are fact-checking and examining the direction of our countermeasure. The plan for the sale and distribution of corporate assets is expected to be decided only when these court procedures are completed.
4. Progress on the client asset distribution plan: Member asset DB cleaning continues in many forms, including inspection. To note, however, as I have stated, a clearer plan will be achievable only after the court procedures are completed.
Continuing from last week, I am adding the following details in the form of FAQs to inquiries submitted by our users via various channels:
Q1) I was wondering if you could fix the time of the weekly announcement.
> We will try to adhere to a set schedule as much as possible in this regard. Please kindly understand, however, that it is difficult to set the announcement time due to external variables that cannot be expected in advance, such as requests for data submissions being made frequently, in a situation where we are working on the matter with limited resources.
Q2) When will you finalize the phased asset distribution?
> The reason for planning the phased asset distribution is that B&S Holdings’ remaining receivables are likely to be precisely identified only by an investigation agency, so the goal is to distribute the remaining assets first. As I informed you previously, we intend to retrieve the assets of the remaining management firms (including internal management teams) except for B&S Holdings and distribute the assets, which will be prepared via selling other corporate assets per stage, to users in phases. Because organizing the users’ database must be prioritized, the precise distribution timeline will be able to be estimated once these steps are completed. We learned that some users initiated Haru Invest’s rehabilitation procedure, and it is believed that the distribution plan can only start once these court procedures are resolved.
Q3) Bitcoin price has recently risen. I’m curious whether there would be any disruption to the distribution or whether the rise would be beneficial to the distribution.
> It is difficult to provide an immediate response to the issue. This is because—once B&S Holdings’ investigation is completed—receivables confirmation, Member DB arrangement, asset distribution plan, setting timetable, etc., must be prioritized. Furthermore, judging the advantage or disadvantage based on the price of the virtual asset at a certain point in time is problematic because asset distribution is expected to occur in phases over many times rather than at a specific point in time.
Q4) I am wondering how you are funding your daily life.
> The weekly announcement aims to share information on the work in progress for the distribution of Member assets on time. I leave out the information about me and individuals in the management team, as well as any content that may affect legal procedures; however, if this question is posed out of concerns about the outflow of assets, I would like to inform you of the following:
> Since almost all employees of Haru Invest and affiliates’ employment contracts were terminated, the executives, including myself, who are putting out the fire, have not been paid at all.
> Because many of Haru Invest’s executives and employees are Haru Invest users, I am well aware that they are experiencing various financial difficulties as a result of this problem, and I am no exception.
> That is why I am also making every effort to recover the assets with a sense of responsibility and an understanding of our users’ feelings to the greatest extent possible. Above all, Haru Invest is in a position where misappropriation of asset outflows cannot happen, as some users have expressed concern; I and the remaining management will make every effort to avoid such a situation.
This concludes this announcement.
As I informed you last week, it is truly regretful that the asset distribution plan was disrupted owing to external variables, such as the issuance of a preservative measure in the rehabilitation procedure initiated by some users, but we will do everything necessary to remedy this situation as soon as possible.
Haru Invest, Hugo Lee