According to a recent report by local news outlet Decenter, South Korean cryptocurrency lending platform Delio will resume the withdrawals, although without a fixed calendar, after pausing them on June 14. In a meeting with investors on June 17, CEO Jung Sang-ho explained that “Delio will secure as much capital as possible to compensate” and that “user withdrawals would come in phases.” However, details about the exact repayment period, method and amount of damages were not disclosed.
Delio is one of the largest cryptocurrency lending companies in South Korea and claims to own about $1 billion worth of Bitcoin (BTC), USD 200 million in Ether (ETH) and approximately $8.1 billion in altcoins. The firm entrusted a sizeable portion of its client funds to another South Korean crypto-yield platform, Haru Invest.
On June 13, Haru suspended deposits and withdrawals after claiming that “certain information provided by a consignment operator was suspected of being false” during an “internal inspection process.” Haru Invest claims to have a user base of over 80,000 people and has facilitated 9.8 million cryptocurrency earnings payouts.. During last week’s Delio investor meeting, Sang-ho alleged that Haru is currently facing bankruptcy:
“It is difficult to guarantee the rate of return that was initially advertised on the deposit product, but it is explained that there will be a plan to recover the loss.”
On June 14, Haru filed a criminal complaint against his service operator, B&S Holdings, and said he plans to pursue civil litigation as well. The company stated:
“Once again, we apologize for causing concern and inconvenience to our investors and clients. We will continue to work on the matter loyally.”
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