Key takeaways:
- Delio, a South Korean crypto lending company, declared on June 14 that withdrawals would be temporarily halted.
- Delio notes the necessity to protect customer funds in the face of rising market volatility.
The South Korean lending industry was hit with surprising news recently as Delio, a prominent lending platform, announced the temporary suspension of withdrawals. Delio has been a trusted player in the South Korean lending market, providing individuals and businesses with a streamlined platform to borrow and lend funds.
With its user-friendly interface and strong reputation, the platform has garnered a significant user base. However, the suspension of withdrawals has created uncertainty and raised questions about the company’s operations.
The primary reason behind Delio’s decision is to ensure the protection of its customers’ assets. By temporarily suspending withdrawals, the platform aims to prevent any potential risks and maintain the security of funds held by customers.
This move comes as a response to the ongoing issues with digital asset deposits and withdrawals at Haru Invest, which have caused increased market volatility and left investors in a state of confusion.
While the announcement does not provide an exact timeframe for the suspension, Delio has assured customers that the decision will be revisited and withdrawal services will be restored once the situation is resolved.
As per the information available on its website, Delio, the crypto-lending platform, oversees a substantial amount of digital assets, exceeding $1 billion. These assets include popular cryptocurrencies such as Bitcoin, Ethereum, and various altcoins.
It is worth noting that in the past, during a market downturn, several crypto platforms that provided lending services abruptly halted customer withdrawals. Unfortunately, some of these firms, including Genesis, Celsius, Voyager and BlockFi, ultimately filed for bankruptcy.
According to Delio CEO Jung Sang-ho, the suspension was necessary to address the rise in withdrawal requests while maintaining asset security. The precise terms of Delio’s transaction with Haru Invest were not disclosed.
Following the suspension of Delio, Upbit, one of Korea’s leading cryptocurrency exchanges, reduced digital asset withdrawals from Delio as part of its investor protection measures. Upbit stressed that their decision was susceptible to change based on developments in Delio’s case.
Delio has also informed its clients that it will do all possible to safeguard their funds “while quickly grasping the facts and aftermath related to this situation.” The company also promised to offer continuous information via announcements about upcoming facts, measures taken to protect consumer assets, and other connected developments.
