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South African crypto investment company Revix says it has had to freeze a quarter of its clients' crypto assets after one of its service providers abruptly halted withdrawals.
Revix, which is backed by JSE-listed investment group Sabvest, said that South Korean company Haru Invest had blocked all crypto withdrawals earlier in the month.
Revix had invested 24% of the crypto assets of clients with Haru.
"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," Revix said in an update posted to its website.
"This reserved status means that these assets are untradeable and non-withdrawable until we have further information from Haru."
All other customer assets can still be traded, it said.
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Revix, which was founded in 2018 and has offices in Cape Town and London, said it was maintaining an "ongoing, active dialogue with Haru Invest" to find out what happened.
"These discussions give us confidence that the recovery of assets held by Haru Invest is attainable, thereby unlocking any reserved assets."
Haru blocked all crypto deposits and withdrawals on 13 June after it said it found evidence that one of its service providers had been providing it with false information.
"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, in a letter to customers.
The South Korean company said this week it was still trying to determine the extent of the potential losses at B&S.
