Crypto lender Delio to resume withdrawals after counterparty contagion

Delio to Resume Withdrawals

According to a report recently released by Decenter, a local news outlet, South Korean crypto lending platform Delio will be resuming withdrawals, although no definite timeline has been set. At a meeting with investors on June 17, the CEO of Delio, Jung Sang-ho, stated that “Delio will secure as much capital as possible to compensate” and that the “withdrawals of users would be done gradually.” No information was revealed in regards to the exact duration, approach, or magnitude of the damages.

Delio, one of South Korea’s biggest crypto lending companies, is said to have approximately $1 billion worth of Bitcoin (BTC), $200 million in Ether (ETH), and $8.1 billion in alternate cryptocurrencies in its possession. A large portion of the funds under the company’s care were entrusted to Haru Invest, another South Korean crypto yield platform.

On June 13th, Haru Invest announced that it had suspended deposits and withdrawals due to suspicions that certain information provided by a consignment operator was inaccurate, which had been discovered during an internal inspection. Haru Invest boasts a user base of over 80,000 people, and has processed 9.8 million crypto earn payouts. During a Delio investor meeting last week, Sang-ho suggested that Haru was on the brink of bankruptcy.

On June 14, Haru lodged a criminal accusation against its service provider, B&S Holdings, and declared its intention to carry out civil proceedings too. The company declared:

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