Revix, a South African cryptocurrency investment company, has suspended withdrawals for some of its clients’ crypto assets owing to an unexpected termination of services by one of its service providers, according to Bitcoinke.
Due to this, a quarter of its clients’ cryptocurrency holdings got temporarily frozen, leading them to experience setbacks in withdrawing their assets.
According to Revix, Haru Invest, a South Korean company, had prevented all digital assets’ removal since the beginning of June. The South African crypto investment company said it has invested 24% of its clients’ assets with Haru.
On its website, Revix had updated that, “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,”. As explained by the South African company, the reserve status means that the digital assets can’t be traded until words from Haru.
Revix has confirmed its continuous engagement with the South Korean company to determine the situation around the prevention of crypto withdrawals.
“These discussions give us confidence that the recovery of assets held by Haru Invest is attainable, thereby unlocking any reserved assets.”
The decision by Haru to block all cryptocurrency transactions came after the South Korean company had said it discovered misleading information from one of its service providers.
“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
Revix has implemented stringent measures to safeguard its customers by securely transferring all their assets into a secure internal custody system.
Customers’ assets, which make up 76% of their crypto holdings and 100% of their fiat cash balances, can be accessed by customers whenever required. As a result, a customer holding 1 BTC and R500 will now have access to 0.76 BTC and R200, with the remaining BTC designated as ‘reserved.’
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