Dear Revix Community,
On 13 June 2023, Haru Invest, one of our primary service providers, unexpectedly suspended all deposits and withdrawals on its platform. Haru Invest is based in South Korea and is a regulated virtual asset service provider (VASP) in the European Union and licensed as a Money Service Business (MSB) in the United States.
According to Haru’s official communication, the company’s withdrawal suspension is a necessary action pursuant to Haru discovering irregularities in respect of one of its service partners. Haru’s official response is available here.
At Revix, the custodial risks of customer crypto assets are diversified and distributed across several platforms and mechanisms, each independent of the other. This includes self-custody, such as cold storage, exchange custody, and collaboration with reputable third-party platforms like Haru. Haru is part of this system and holds a portion of Revix-controlled customer assets.
Haru Invest’s role in this diversified framework is to provide secure custody of customer crypto assets through a regulated and vetted partner while simultaneously providing a return that is not linked to the ups and downs of the rest of the market.
Addressing this situation has necessitated a meticulous and careful approach on our part. We felt it crucial to take time to gather enough data to get a clearer picture of the scenario. It was essential to gain further clarity and certainty from Haru Invest before sharing this update. This exhaustive evaluation was crucial in helping us derive the most appropriate course of action to best mitigate the obvious adverse impact of this matter.
The Implications for Revix’s Customers
Revix’s operations continue to operate as normal. However, given Haru Invest's unexpected halt on withdrawals, we have no alternative but to render 24% of crypto asset balances held on the Revix platform as of Tuesday, 13th June, at 02:00 GMT+2 as reserved. This is the proportion of the crypto assets controlled by Revix that are held with Haru.
This reserved status means that these assets are untradeable and non-withdrawable until we have further information from Haru. We are hopeful that Haru Invest resolves its stated issues with its service provider and that it returns the crypto assets they hold in custody. In the event that this happens, we will swiftly make the reserved 24% of crypto assets available to our customers.
The balance of customer assets—comprising 76% of crypto holdings and 100% of fiat cash balances—are securely held and are within our customers’ control on our platform, enabling them to hold, trade or transfer these assets if desired.
At Revix, we're committed to safeguarding customer assets, and to ensure their security, 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.
The Way Forward
We take this situation very seriously and are committed to resolving this situation as quickly as possible.
Our team is maintaining an ongoing, active dialogue with Haru Invest. These discussions give us confidence that the recovery of assets held by Haru Invest is attainable, thereby unlocking any reserved assets.
We assure you that we will pursue every possible course of action within our legal purview to reclaim these assets.
The entire Revix team is deeply committed to ensuring the utmost safety of customer assets and maintaining full transparency, providing updates as they become available. Please reach out to our customer support team at support@revix.com if you have any questions.
With sincere regards,
The Revix Team
