Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
South Korean Lending Service Delio Encounters Operational Challenges Following Asset Confiscation
Delio, a South Korean firm specializing in digital asset savings and lending, has entered a more severe predicament over a month after halting user withdrawals. Authorities seized Delio’s assets on July 18th, which reportedly hindered its operations.
Related Posts
The latest update indicates that the actions taken by the South Korean regulator have rendered it “challenging for the company to deliver standard services.” It also emphasized the necessity to prevent the dispersion of the platform’s assets in the interest of depositors.
- In a notice (translated from Korean), Delio expressed concerns regarding its capability to operate normally after the South Korean Financial Services Commission (FSC) confiscated all assets belonging to customers and the company, along with other cold wallets and ledgers.
- Delio was a significant entity in the South Korean cryptocurrency landscape.
- The lending firm temporarily halted withdrawals starting June 14, citing heightened market volatility and investor uncertainty at its sister lending company Haru Invest, which ceased deposits and withdrawals just a day prior.
- Delio further stated that it was concentrating on protecting customer assets in its custody and mentioned that withdrawals would remain suspended until the matter is resolved.
- A few days later, Delio’s chief executive Jung Sang-ho disclosed that the lending platform would restart withdrawals. No additional timeline was provided concerning the suspended services.
- The decision to suddenly stop withdrawals drew criticism from the community while the FSC initiated an investigation into the firm’s operations due to allegations of fraud, embezzlement, and breach of trust.
SPECIAL OFFER (Sponsored) Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.
