Bitcoin lending giant Delio has ceased interest payments for all users. South Korean officials confiscated the company’s headquarters and froze assets, including client cash and cold wallets, making normal business operations impossible, media reports said.
On July 18, prosecutors from Seoul’s Southern District conducted a raid that badly harmed Delio’s company. In a blog post, the company confirmed the asset seizure and the resulting disruptions in business activities.
This new event follows Delio’s unexpected withdrawal restriction in June, when the business blamed increased market volatility on the suspension of withdrawals in Haru Invest, a Singapore-based crypto investment manager with whom it had collaborated. Surprisingly, just hours before barring user withdrawals, Delio moved 9.24 billion won in bitcoin to unknown external wallets.
A hundred investors have launched a lawsuit against Delio and Haru Invest, accusing them of fraud, adding insult to injury for the company. These shareholders argue that both businesses misrepresented their investment prospects by offering guaranteed high returns while covertly engaging in high-risk trading. The plaintiffs are seeking a staggering 50 billion Korean won in damages.
Delio was a well-established bitcoin lending organization that has previously signed relationships with large South Korean companies such as the SK Group and the Lotte Group. Recent developments, however, have raised questions about the company’s dependability.
When requested for further information on the investigation, the Seoul Southern District Prosecutor’s Office remained mute.
Delio’s investors and customers are in the dark regarding the business’s future and are waiting with bated breath for further information from the company and the authorities. Stakeholders in South Korea’s bitcoin lending market are still attempting to figure out what this unusual situation implies for the industry as a whole.
The South Korean cryptocurrency market has been rattled by Delio’s decision to cease interest payments and potential asset seizure. Because of the ongoing investigation and legal measures, cryptocurrency investors may be concerned about the company’s future. However, until fresh information becomes available, the future of Delio and its customers remains unknown.
