Delio platform warns of closure after asset seizure


South Korea-based crypto lending platform Delio reports difficulty returning to normal operations after arrest FSC assets.

According to the blog post, as part of the depositor lawsuit, the regulator seized “all assets owned by customers and the company, as well as other cold wallets and ledgers.”

Delio expressed concern about the possibility of resuming the provision of services as before.

June 14 company temporarily restricted operations amid “market volatility caused by problems at subsidiary digital asset management firm Haru Invest.”

The latter suspended withdrawals and deposits, citing problems with service partners.

Then Delio explained their actions by the desire to “ensure the safety of client assets.” Representatives promised that the lifting of the moratorium on the withdrawal of funds will occur “after the resolution of the current situation and its subsequent consequences.” They assured that they would constantly inform about the changes.

On the same day, Haru Invest sued partner B&S Holdings with allegations of fraud.

On June 27, Delio resumed withdrawals for customers of some staking services. Three days later, FSC initiated an investigation into the company’s activities, according to Digital Asset.

The regulator is suing Delio for fraud, embezzlement and breach of trust related to a “unilateral decision” to suspend users’ deposits and withdrawals. The firm’s CEO Jeong Sang-ho and others were forbidden to leave the country.

According to the company’s website, AUM Delio reached $1 billion in bitcoin and $8.1 billion in altcoins.

Recall that from January 2024, the FCS will oblige firms to disclose data on the presence of digital assets on the balance sheet. This follows from the updated accounting rules.

In June 2023, the South Korean Parliament passed a law to protect users of cryptocurrencies.

The document brought together 19 different bills related to digital assets. It introduces liability for offenses such as the use of insider information, market manipulation and unfair trading practices.

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