Cryptocurrency lender Delio warns that normal operations are jeopardized after asset seizures

South Korean crypto lending company Delio has reportedly expressed concerns over whether it can continue to provide normal services to customers after its assets were frozen by the local financial regulator.

In the blog of July 22 Afterwards Translated from Korean, Dalio said that the ongoing legal battle with depositors and the search and seizure of company assets on July 18 resulted in the FSC freezing “all client and company assets, as well as other cold wallets and ledgers.”

Dalio pointed out that the recent actions made it difficult for the company to provide normal services, adding that it was necessary to prevent the dispersion of Dalio’s assets in the interest of depositors.

According to the post, since July 24, Delio has suspended interest payments for its deposits and Vault users. The company said services that incur additional costs, such as interest payments or operating costs, have been suspended.

Sudden Delio on June 14 Withdrawal and deposit blocked To “securely protect customer assets currently in custody” on its platform – against market volatility Deposit and Withdrawal Restrictions Sister loan company to Haru Invest.

Haru Invest did it Recording closed on June 13 After an investigation it was found that some of the information provided by its consignment operator B&S Holdings was incorrect. The next day, Haru invests announced that it is starting Own legal proceedings against B&S Holdings.

notice of suspension of withdrawal

Due to the recent suspension of digital asset deposits and withdrawals at Haru Invest, there has been a sharp increase in market volatility and panic among investors.

To ensure the protection of the assets of our valued customers,…

– Delio Global | Web3.Crypto (@happydelio) 15 June 2023

Three days later, on June 17, Delio CEO Jung Sang-ho revealed that the company would resume shooting, but gave no timeline for when full functionality would return to the platform. On 27 June, the company reopened access to some of its removal services.

However, as of June 30 reports This move by the digital asset has not stopped the FSC from investigating and subsequently suing Delio over the sudden suspension of withdrawals.

Connected: British banks at risk of losing license for customers who debunk their bank because of political views

The FSC sued Dalio on June 14 for fraud, embezzlement and breach of trust in connection with a “unilateral decision” to suspend user deposits and withdrawals. Furthermore, CEO Jeong Sang-ho and others were not allowed to leave the country.

Established in 2018, Delio is one of the largest crypto lending platforms in South Korea, offering a wide range of custody, lending and borrowing services. According to the company’s website, it holds approximately $1 billion worth of bitcoin (B T c), $200 million in Ether (ETH) and about $8.1 billion in altcoins.

Cointelegraph reached out to Dalio for comment, but did not receive an immediate response.

magazine: The unique and wonderful crypto universe of South Korea