according to a report Per local news outlet Digital Asset, South Korean crypto lending firm Delio is under investigation by the country's Financial Services Commission (FSC) as of June 30. The Commission alleges fraud, embezzlement and breach of trust related to Delio's unilateral decision to suspend users. ' deposits and withdrawals on June 14.
During an extraordinary investor meeting on June 17, Jung Sang-ho explained that the company would resume withdrawals, albeit without a fixed schedule at the time. On June 27, the company began opening withdrawals for a portion of its staking services.
"[Delio] will secure as much capital as possible to compensate," Sang-ho said. Delio is currently one of the largest crypto lenders in South Korea, with an estimated $1 billion in Bitcoin (BTC), $200 million in Ether (ETH) and $8.1 billion in Its CEO and senior staff have reportedly been barred from leaving the country pending an investigation by prosecutors.
On June 13, Delio's sister firm, Haru Invest, withdrawals and deposits suspended, citing a problem with a "shipping carrier". The move prompted Delio to follow suit the next day, likely due to the counterparty's exposure. Since the announcement, Haru Invest has reportedly cut most of its staff. The company says that it is currently taking legal action against its service partner.
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 therefore not under the jurisdiction of regulators. It was alleged that Delio's management denied exposure to Haru Invest shortly before its decision to suspend the withdrawals.
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