South Korean cryptocurrency lending firm Delio is facing challenges in providing normal services to customers after its assets were seized by local financial regulators. In a blog post on July 22, Delio expressed concerns about its ability to continue operations Due to an ongoing legal battle with depositors and the recent seizure of all assets owned by customers and the company, including cold wallets and ledgers, by South Korea's Financial Services Commission.
As a result of the asset seizure, Delio has suspended interest payments for its deposit and vault users, along with other services that require additional costs. The company emphasized the need to prevent the fragmentation of its properties for the benefit of depositors. Delio had Previously halted withdrawals and deposits on its platform in June to protect the assets of current custody clients from market volatility caused by the suspension of deposits and withdrawals at its sister lender, Haru Invest.
Haru Invest had suspended withdrawals after an investigation revealed false information provided by its consignment operator, B&S Holdings. While Delio eventually reopened withdrawals for some staking services, the Financial Services Commission launched an investigation and sued the company for fraud, embezzlement, and breach of trust over the sudden suspension of user deposits and withdrawals in June. Delio's CEO and others involved in the company were also banned from leaving the country.
Founded in 2018, Delio is one of the largest cryptocurrency lending platforms in South Korea, offering custody, lending, and staking services. According to its website, the company holds significant amounts of various cryptocurrencies, including about $1 billion in bit coin, $200 million in ether, and around $8.1 billion in altcoins.
