Revix, the cryptocurrency investment platform based in Cape Town and London, has declared a suspension on withdrawals of 24% of its customers’ crypto assets. This decision comes in the wake of its South Korean custody partner, Haru Invest, freezing withdrawals amid allegations of false accounting. Haru Invest, a regulated virtual asset service provider in the European Union and a licensed Money Service Business in the United States, had been entrusted with a portion of Revix’s customer assets as part of a diversification strategy.
Revix’s CEO, Sean Sanders, expressed regret over the unforeseen circumstances and assured that the remaining 76% of crypto assets and 100% of fiat currency deposits are unaffected and can be accessed immediately. He also mentioned that they are closely monitoring the situation and are prepared to take legal action, if necessary, to recover customer assets. However, the timeline and percentage of asset recovery remain uncertain.
Haru Invest has justified its withdrawal suspension as a necessary step after discovering irregularities with one of its service partners. The company has announced its intention to take legal action to recover damages for its users and has taken steps to protect company-owned assets and minimize operations.
In response to the situation, Revix has moved all other assets to cold storage (offline) to eliminate risks of hacking, with minimal balances being maintained on crypto exchanges (hot storage). The company is also engaging with multiple custodial services, including major banks, and is prepared to absorb the higher custody fees from its operating revenue. Revix is committed to rebuilding trust with its customers and has been transparent about the situation with Haru and their actions to address it.
For instance, a customer holding one bitcoin and R100 on the platform as of 13 June would now have access to 0.76 bitcoin and the entire R100. However, the remaining 0.24 bitcoin would be classified as ‘reserved’ until Haru Invest releases the assets it holds.
