according to a Report South Korean cryptocurrency lending firm Delio is currently under investigation by the country’s Financial Services Commission (FSC) as of June 30, local news outlet Digital Asset reported. The commission accused Delio of fraud, embezzlement and breach of trust in its unilateral decision to suspend users’ deposits and withdrawals on June 14.
During a special investor meeting on June 17, Chung explained that the company would resume withdrawals, although there was no fixed timetable at the time. On June 27, the company began to open the withdrawal of some pledge services.
“(Delio) will get as much money as possible to compensate,” Xianghao said. Delio is currently one of the largest cryptocurrency lenders in South Korea, holding about $1 billion in bitcoin (BTC), $200 million in ether (ETH) and $8.1 billion in various altcoins. Its chief executive and managers have reportedly been barred from leaving the country while prosecutors investigate.
On June 13, Delio’s sister company, Haru Invest, suspended withdrawals and deposits, citing problems with a “consignment operator.” The move prompted Delio to do the same the next day, likely due to counterparty risk. Haru Invest has reportedly laid off most of its staff since the announcement. The company said it is currently taking legal action against its service partners.
As a registered Virtual Asset Provider (VASP), Delio is regulated by the country’s Financial Intelligence Unit. However, Haru Invest is reportedly not a VASP and thus falls outside the regulator’s purview. Delio management allegedly denied having approached Haru Invest shortly before deciding to suspend withdrawals.
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