Revix, a South African cryptocurrency investment company, has reported that it had to suspend withdrawals for a quarter of its clients’ crypto assets due to the sudden termination of services by one of its service providers.
As a result, a portion of clients’ cryptocurrency holdings were temporarily frozen, preventing them from accessing or withdrawing their assets.
Revix says that Haru Invest, a South Korean company, had blocked all cryptocurrency withdrawals earlier in the month. Revix had invested 24% of the crypto assets of clients with Haru.
“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 reserved,” Revix said in an update posted to its website.
“This reserved status means that these assets are untradeable and non-withdrawable until we have further information from Haru.”
All other customer assets can still be traded, it said.
Revix, established in 2018 with offices in Cape Town and London, has affirmed that it is engaged in continuous and active communication with Haru Invest in order to understand the circumstances surrounding the blocking of crypto withdrawals.
“These discussions give us confidence that the recovery of assets held by Haru Invest is attainable, thereby unlocking any reserved assets.”
Haru Invest took the decision to block all cryptocurrency deposits and withdrawals in June 2023 after discovering evidence that one of its service providers had supplied it with misleading information.
Haru Invest said the recent discovery of irregularities in management reports submitted by B&S Holdings had compelled it to act.
“We are pursuing legal action against B&S Holdings for fraud, embezzlement, and other allegations. In the course of these legal actions, we are also gathering facts, including determining the extent of the damage,” said Haru’s CEO, Hugo Lee, in a letter to customers.
According to Revix, it has taken rigorous measures to protect them by securely moving all of its 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. This means that a customer holding 1 BTC and R500 would now get access to 0.76 BTC and R200, with the remaining BTC classified as ‘reserved.’
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