Breaking News: South Korea Executive Escapes South Korea with Billions of Stolen Dollars, Defying Travel Ban.

June 29, 2023

In a shocking turn of events, a story that already involved billions of dollars missing, affecting of investors worldwide, and at least one international fugitive, multiple sources have confirmed that Song Joon, Director of B&S Holdings (previously known as Aventis) has fled South Korea in defiance of a court ordered travel ban. The travel ban, which was implemented because B&S Holdings was accused of defrauding investors out of billions of dollars, was reportedly defied earlier by Hugo Lee, CEO of Haru Invest, the company which B&S is accused of defrauding. However, these reports of Mr Lee's escape from South Korea, now appear to have been planted by Song Joon, and Mr Lee's whereabouts are considered to be unknown at this time.

B&S Holdings is led by Mr Song and JH Bang. While the firm has terminated its website, archived internet files reveal that B&S Holdings described itself as a "low risk trading firm" and provided its services by 'Invitation Only'. Archived files also show that Mr Song alleges to have an active affiliation with the University of Virginia and Mr Bang alleges to have an active affiliation with Seoul National University. Additional members of B&S's Board of Directors include "T Tsuzuki" and "Y Lee". Further evidence reveals that B&S Holdings is a subsidiary of Philosophia Ventures, "a Seoul-based investment firm founded in June 2022". Philosophia has also since deleted its entire social media presence, including its Medium and Twitter pages, although its website remains live, at the time of writing.

Mr Song's escape from South Korea, is made all the more remarkable that his escape from South Korea was identified by amateur internet sleuths, made possible by Mr Song's planting online evidence proving that Haru Invest CEO Hugo Lee, who was placed under the same travel ban as Mr Song, had fled South Korea. At this time, it is unclear if Mr Lee has in fact fled Korea.

South Korean authorities had imposed the travel ban on executives of B&S Holdings and Haru Invest as part of a fraud probe to locate and retrieve the missing billions of dollars which investors had entrusted with Haru Invest, which was then provided to B&S Holdings. Haru Invest has since alleged that it is taking legal action against B&S Holdings, a claim that has been refuted by the Korean Law firm LKB & Partners who have been aggressively courting Haru Invest's victims. Haru Invest's own legal representatives Kim & Chang have dismissed LKB's claim that Haru Invest has not in fact initiated legal action against B&S Holdings, and derided LKB & Partners as 'ambulance chasing drug addicts' in a private Telegram chat group.

While it is unclear if Haru Invest has taken legal action against B&S Holdings, the very fact that Haru Invest provided B&S with funds belonging to Haru investors contradicts Haru's public and private statements, such as "We do not rely on other entities and have zero exposure to any DeFi services nor lending services." on Aug 8, 2022.

Forcing Mr Song to return to South Korea may not be entirely straight forward, as South Korea's extradition process involves several stages. The requesting state initiates the process by submitting an extradition request through diplomatic channels to Korea's Minister of Foreign Affairs. The Minister reviews whether an extradition treaty or guarantee of reciprocity exists between South Korea and the requesting state. If the requirements are met, the request and supporting materials are sent to the Minister of Justice for further review.

The Minister of Justice then assesses the extradition request's compliance with the relevant laws and may order the court's judicial review on extradition or refuse the request based on various grounds. If the judicial review is ordered, the responsible prosecutor requests the court's review and, if necessary, files for an arrest warrant for the requested person. The court issues an arrest warrant unless there are legal violations, clear grounds to refuse extradition, or the requested person has a stable residence without a risk of absconding.

The Seoul High Court conducts the review of the extradition request and may hold oral hearings if deemed necessary. The requested person and their counsel have an opportunity to present their position during the review process. The court may dismiss, refuse, or allow extradition based on various factors, including the nature of the alleged offense and the absence of extradition barriers. The court's decision is final and cannot be appealed.

Ultimately, the Minister of Justice makes the final decision to either release or extradite the requested person based on the court's order. If the decision is to extradite, the requesting state receives authorization through diplomatic channels. The requested person may be surrendered to the requesting state upon presenting the authorization to the requested state's prison.

The case of Haru Invest and the travel ban on its executives underline the South Korean government's commitment to combat fraudulent activities in the cryptocurrency sector. It also emphasizes the importance of stringent regulatory control to safeguard investors and restore confidence in the industry. As investigations and legal battles continue, the fate of Haru Invest remains uncertain, leaving thousands of users in 140 countries facing financial uncertainty.

It is essential to note that the cryptocurrency industry is undergoing increased scrutiny and regulation both in South Korea and internationally. Recent incidents, such as the collapse of FTX and the arrest of its CEO, Sam Bankman Fried, have raised concerns about stability and transparency in digital asset platforms. The travel ban on B&S and Haru Invest executives adds to the growing necessity for robust rules and regulations to protect investors and foster a more trustworthy and resilient crypto environment.