South Korean Crypto Firm Delio To Resume Withdrawals After Suspension

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Key Takeaways

  • Delio’s CEO stated that the firm would make every effort to secure sufficient capital to facilitate the withdrawals
  • Delio had entrusted a significant portion of its clients’ funds to Haru Invest, which paused withdrawals earlier this month.

South Korean crypto lending platform Delio has recently announced that it will resume withdrawals after temporarily suspending them on June 14, according to a report from local news outlets. However, the platform has not provided a specific schedule for the resumption of withdrawals, leaving users uncertain about when they can access their funds.

During a meeting with investors on June 17, Delio’s CEO, Jung Sang-ho, addressed the concerns and outlined the company’s plan to compensate users. He assured investors that Delio would make every effort to secure sufficient capital to facilitate the withdrawals. [Delio] will secure as much capital as possible to compensate” and “users’ withdrawals would come in phases.”

Notably, Delio had entrusted a significant portion of its clients’ funds to another South Korean crypto yield platform called Haru Invest. However, Haru Invest created a stir on June 13 when it suddenly suspended both deposits and withdrawals.

The company cited concerns about the accuracy of information provided by a consignment operator during an internal inspection. With over 80,000 users and approximately 9.8 million crypto-earn payouts facilitated, the suspension caused significant anxiety among Haru Invest’s customers.

During the investor meeting held by Delio, CEO Jung Sang-ho revealed troubling news about Haru Invest, stating that the platform is currently facing bankruptcy. He acknowledged the challenges of guaranteeing the originally promised rate of return on the deposit product. However, he assured investors that a plan was being devised to recover the losses suffered by users.

In response to the situation, Haru Invest has taken legal action by filing a criminal complaint against its service operator, B&S Holdings, on June 14. The company also expressed its intention to pursue civil litigation, seeking accountability for the ongoing predicament. Haru Invest issued an official statement apologizing to its investors and customers for the concerns and inconveniences caused by the suspension of deposits and withdrawals.

The developments surrounding Delio and Haru Invest underscore the challenges faced by cryptocurrency lending platforms in ensuring the stability and security of their operations. As the industry continues to grow and evolve, regulatory frameworks and robust risk management practices will play an increasingly crucial role in safeguarding the interests of investors and customers.

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Saniya Raahath
Saniya Raahath

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