Delio, a South Korean cryptocurrency lender, has recently announced the halt of certain interest payments following a recent investigation. The investigation led to the seizure of the assets of both the company and its customers. As a result of this development, Delio has raised concerns about whether or not it can continue to provide normal services to clients. As per the announcement by the company, the ongoing development with depositors and the search and seizure of assets led to the closure of certain operations.
Delio further continued to explain that these recent actions have made it difficult for the company to continue providing normal services. At the same time, there is also a need to prevent the scattering of the firm’s property in the interest of depositors. Apart from the suspension of interest payments, the company also suspended a series of services that require additional expenses, such as operational expenses.
Delio added,
”In accordance with Article 5 of the Terms of Service and Article 8 of the Deposit Terms of Use, we inform you that some services that inevitably require additional expenses such as operating expenses and payment of interest have been suspended.”
Keeps on Getting Worse for Delio
Not too long ago, Delio suddenly stopped deposits and withdrawals and mentioned that this was done to safeguard the assets of customers in custody. This move followed as a result of market volatility caused by halting deposits and withdrawals at sister lending company, Haru Invest.
Haru Invest halted deposit and withdrawal services itself after investigations revealed that some of the information provided by its consignment operator, B&S Holdings, was incorrect. The day after that, Haru Invest announced its intention of launching a legal investigation against B&S Holdings. However, this move did not stop the FSC from launching an investigation into Delio, and later suing it for the abrupt suspension of deposits and withdrawals.
Furthermore, the FSC sued Delio for fraud, embezzlement, and breach of trust regarding the sudden decision of suspending deposits and withdrawals on June 14 this year. The CEO of the company, Sang-Ho, and numerous other executives were banned from leaving the country. However, the CEO did mention that services would be resumed but did not exactly mention a timeline.
Delio was founded back in 2018 and has established itself as one of South Korea’s largest crypto lending platforms. The firm is responsible for offering a diverse range of custody, lending, and staking services. It is believed that the company holds $1 billion in Bitcoin, $200 million in ETH, and $8.1 billion in altcoins.
