South Korea’s Financial Services Commission (FSC) decided to seize Delio’s assets, raising questions about its future operations.
Founded in 2018, South Korean cryptocurrency lending giant Delio is on the ups and downs. The company’s woes began when the local financial regulator, the FSC, took control of the company and its clients’ assets. This includes not only physical assets, but also their cold wallets and ledgers. The seizure came as a result of an ongoing legal dispute with depositors that has left Delio in trouble, making it difficult to provide regular services.
suspension of interest payments
The company emphasized the need to protect its assets, especially considering the interests of depositors. In light of these events, Delio has taken the difficult decision to suspend interest payments to its deposit and vault users effective July 24. Other services that require additional spending, such as operating costs, have also been put on hold.
Deposits and withdrawals have been stopped
The decision has understandably fueled customer concerns. Delio’s most recent move dates back to June 14, when they suddenly Stop deposits and withdrawals on their platform. The move is a protection against market volatility that has been exacerbated by a similar move by its sister lender Haru Invest. Haru Invest’s decision to halt withdrawals was influenced by findings of misleading information by its consignment operator, B&S Holdings.
The FSC’s involvement deepened when it launched an investigation into Delio’s sudden suspension of trading. The investigation culminated in the filing of a lawsuit against Delio alleging fraud, embezzlement and breach of trust. As a result of the legal action, travel restrictions have been imposed on Delio CEO Jeong Sang-ho and others.
One of the largest crypto lending platforms
Despite the shadow cast over Delio at the moment, it is crucial to recognize their significant presence in the crypto space. They are one of the premier cryptocurrency lending platforms in South Korea, with a wide range of services from escrow to staking. Their impressive portfolio includes around $1 billion in bitcoin, $200 million in ether, and a staggering $8.1 billion worth of various other altcoins.
Disclaimer: This article is for informational purposes only. It does not provide or be intended to be used as legal, tax, investment, financial or other advice.