- Revix Exchange had invested 24% of its total client assets in the South Korean company.
- On October 2, Haru Invets stated their firm is working on an asset recovery proposal.
- Sean Sanders said that the asset recovery proposal is their only hope of recovering the frozen assets from their custody partners.
The crypto industry has its fair share of ups and downs. In the past year, the entire ecosystem has hung on strings to recover its former glory. After the FTX crash, the whole of the web3 ecosystem was questioned. Governments, regulator bodies, and crypto traders all witnessed how centralizing the web3 industry could result in the loss of billions.
Fortunately, through the intervention of several actors, the industry has managed to cull its weak links and survive. This, however, has resulted in the loss of many exchanges and crypto-based organizations. Generally, many exchanges have succumbed to the pressure of crypto laws, while others have suffered from the low trading volume of their users. Either way, the industry has shrunk, shining some ray of hope for its survivors.
Among this rapt race to salvage, South African crypto investment platform Revox Exchange has found some hope to revitalize its operations. According to the report, Revix exchange has pinned its hopes on Haru Invest’s asset recovery proposal. If Haru Invest manages to come on top, it will enable Revox Exchange to resume its daily operations.
The Downfall of Revix Exchange
Amid the crisis of the crypto winter mid-year, a particular trend caught the eye of the entire crypto ecosystem: crypto lawsuits. Since the FTX crash, there has been an ongoing chase for any crypto-based organizations operating under suspicious intent. As a result, several organizations had to freeze user assets while others wholly shut down. Unfortunately, the South African crypto investment platform Revix Exchange soon became a victim of this trend.
Revix Exchange had initially diverse its client assets in different investment platforms. However, amid the crypto lawsuits, one of its key investment areas, Haru Invest, took a drastic turn, forcing the South African crypto investment platform into a tricky spot. According to the report, Haru Invets blocked all crypto withdrawals in July 2023. This was a shocking reveal as Revix Exchange had invested 24% of its total client assets in the South Korean company.
This forced Revix Exchange to suspend its withdrawals for a quarter of its client’s crypto assets. A significant wave of backlash soon threatened the very foundation of the investment platform. Revix Exchange posted, “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. This reserved status means that these assets are untradeable and non-withdrawable until we have further information from Haru.“
Due to this turn of events, Revix’s five-year-long reputation went down the drain as its clients began demanding compensation. Since then, the South African crypto Investment platform has significantly suffered additional losses. However, it has still managed to retain its operations.
In response, Revix exchange took several measures to protect its assets by securely moving all its customers’ holdings into protected internal custody. According to the report, customer assets comprising 75^ of their crypto holding and 100 fiat cash balance were moved to allow customer access.
Revix Exchange, our hope lies in the asset recovery proposal.
Haru Invest initially took this initiative after noticing suspicious activity within its ecosystem. Their system had identified that one service provider had supplied misleading information on a vital functionality component. Haru CEO Hugo Lee said, “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.“Fortunately, on October 2, Haru Invets stated their firm is working on an asset recovery proposal. After months of unanswered questions, Haru Invest noted that the asset recovery proposal would return the blocked funding via an equitable distribution process. Sean Sanders, CEO of the South African Crypto investment platform, said that the asset recovery proposal is their only hope of recovering the frozen assets from their custody partners.
However, both Sean and Hugo have hinted that the actualization of the asset recovery proposal is still undefined, further lengthening the process. Due to this, many clients have concluded that Haru Invest will have a similar downfall to Celsius. Sanders stated that the comparison is still premature. He said, “It’s not correct to compare Haru to Celsius just yet. No concrete information has emerged on what exactly happened to Haru Invest. However, Haru has publicly communicated that it plans to distribute the assets it holds. This infers that there is value to be returned.“
Sanders added he would continue to monitor the recovery efforts of his organizations. This will eventually showcase the integrity and genuineness of the South African crypto investment firm, although many have given up. The crypto lawsuits and crypto dragged many African-based exchanges into the mud. Thus, many crypto traders foresee Revix exchange experiencing the same fate.
The crypto industry recently gained a positive turn of events as Bitcoin shot up, pushing the value of the entire industry. Despite this, many exchanges still face threats from crypto lawsuits and unwilling traders. If nothing is done, Africa’s crypto ecosystem may eventually crash while the rest of the world experiences the anticipated Bull Run. The asset recovery proposal is only a ray of hope for Haru Invest and Revix exchange. Unfortunately, the lack of details further lowers its expectations, but only time will tell.