July | Revix’s Progress with Haru Invest

Hi Revix investor,

We’re writing to keep you informed regarding recent material developments in the Haru Invest (“Haru”) matter.

Our aim is to continuously ensure open, objective, and clear communication as developments unfold.

Haru Developments

The following are noteworthy points:

• In June 2023, Haru, one of Revix’s primary service providers, halted all operations including withdrawals due to alleged irregularities involving its service partner called B&S Holdings. After Haru’s suspension of withdrawals, it became known that the company had entrusted customer virtual assets to B&S Holdings.
• There are currently three related fraud trials underway: one involves B&S Holdings, another concerns its CEO, Bang Jun-ho, and a third related to Haru.
• The fourth hearing of Haru’s fraud trial took place on June 4, 2024. This hearing focused on whether Haru was forced to suspend withdrawals due to alleged fraudulent activities by B&S Holdings. The prosecution argued that Haru was unable to repay customers in June 2023 because of a lack of assets, regardless of B&S Holdings’ actions. The defence claimed that without the losses from B&S Holdings, Haru could have met its financial obligations to customers. They stated that Haru’s service was suspended due to B&S Holdings allegedly managing assets speculatively and providing false management reports.
• During this hearing, the prosecution claimed that Haru’s significant investment with B&S Holdings, without customer consent, could be an act of deception. The focus of the next hearing on June 26th is expected to focus on this alleged deception.
• On the 14th of June 2024, the fourth hearing of B&S Holding’s fraud case was conducted. During this hearing, it was confirmed that Bang Jun-ho has applied for bail. The court noted that Bang will be questioned regarding his bail application at the next trial scheduled for the 2nd of July 2024.
• As mentioned in earlier updates, a petition for the bankruptcy of various Haru entities as well as Bang Jun-ho has been filed. These proceedings have not yet formally commenced.
• In July 2024, a new consumer protection framework, the Virtual Asset User Protection Act, will take effect within South Korea. This framework will target market manipulation, illegal trading and other violations and implement severe penalties for violations, including life imprisonment for crypto-related crimes.

Next Steps

• These fraud trials are progressing, revealing crucial details in each session. As the proceedings continue, we are learning more about the actions undertaken and the potential value of assets held by each party involved.
• The upcoming implementation of the new South Korean consumer protection laws in July 2024 is expected to further support these efforts.
• Additionally, the likely initiation of bankruptcy proceedings could lead to the declaration of bankruptcy for the entities, with authorised bankruptcy professionals appointed to manage B&S Holdings and Haru. Should this occur, the respective experts would be responsible for managing the entities, focusing on adjudicating creditor claims and facilitating the disbursement of payments to debtors according to the relevant legal frameworks, as similarly seen with FTX and Celsius.