Delio, a cryptocurrency lending platform in South Korea, has temporarily suspended withdrawals due to market volatility. The suspension will take effect from 6:30 pm on June 14, as the after-effects of Haru Invest’s recent suspension of deposit and withdrawal of crypto assets ripple through the industry.
Haru Invest, a South Korean interest-bearing crypto platform, paused its deposit and withdrawal services on June 13, and since then, the platform has been embroiled in a rugpool controversy. On the following day, Haru explained that “the consignment company provided false information,” but the controversy does not appear to have lessened.
Delio Suspends Withdrawals
Delio said, “We have decided to temporarily suspend withdrawals until the aftermath is resolved.”
Delio is the only virtual asset deposit service in South Korea that has been reported to the financial authorities as a virtual asset operator (VASP). According to Delio’s website, the platform is currently managing a total of 41,740 Bitcoin (BTC), which is valued at approximately $1.1 billion, and 118,033 Ether (ETH), with an estimated value of around $206 million.
Delio provides several crypto savings products that guarantee returns exceeding 10%. Users have the option of receiving higher returns by depositing digital assets that are often lent out to borrowers, including hedge funds, after being locked in.
Upbit to Restrict Withdrawal of Crypto for Delio
In response to Delio’s suspension, South Korean cryptocurrency exchange Upbit has announced that it will restrict the withdrawal of crypto assets for Delio as part of investor protection measures.
Meanwhile, Delio stated that it would provide regular updates to its users through official announcements regarding any developments related to identifying important facts, measures taken to safeguard customers’ assets, and other relevant information.
“Delio will do our best to protect the assets of our customers while quickly grasping the facts and aftermath related to this situation. We will continue to inform you through announcements regarding the facts to be identified later, protection of customers’ assets, and measures for this,” the company said in a statement.
