Haru Invest, a Singapore-based crypto asset management company, said it has paused deposits and withdrawals on its platform due to an issue with a third-party vendor.

In a blog post, the company announced that it had come across an issue with one of its service providers. Even though they did not explain the nature of the issue, Haru Invest said they are investigating the matter. It said that they decided to suspend deposits and withdrawals of assets by customers to protect customer funds in their custody.

Seeking the contingency plan to rectify the situation

The full statement from the company said,

“Recently, we have come across a certain issue with one of the service partners we have worked with. We are now further investigating the issue with them and seeking the contingency plan to rectify the situation. For the purpose of protecting our users’ assets under our custody, we have come to the tough decision that any deposit and withdrawal requests will be suspended until further notice, starting from June 13, 2023, at 0:40 UTC.”

A high yield mining product

A look around the company website shows that a June 9 release said that the company was offering up to 12% daily profit in one of its service products called the 2nd Haru Mining Round. Further search shows that the mining product featured USDT and USDC stablecoin lock-up for one year, an earn rate of 12% daily, and a minimum lockup of $10. The company said that the sign-up period for the product is from June 12th until June 25th (UTC), and it has what it called a pool size of $100,000 in USDT or USDC.

It is not yet certain if the issue Haru Invest encountered is associated with the announced mining service. However, companies that offer such a high ROI in the crypto industry are known to be associated with financial issues down the line.