Delio CEO Announces Phased Withdrawal Resumption Amid Lugpool Controversy, Awaited Dates
South Korea’s leading crypto lending firm, Delio, suspended withdrawals just two days ago amidst the Lugpool controversy. However, the company’s CEO has now revealed plans to resume withdrawals gradually. The announcement from Delio aimed to pacify investors, but it did not provide specific information about the repayment timeframe, method, or the extent of the damages incurred.
Delio CEO Jeong Sang-ho revealed during an investor briefing that the company would initiate a phased resumption of withdrawal services. However, he emphasized that the plan’s execution was subject to the evolving circumstances involving Haru Investment and B&S, both closely connected to Delio’s operations. The CEO acknowledged the fluidity of the situation, indicating that further developments would shape the timeline for the withdrawal resumption.
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During the briefing, CEO Jeong acknowledged that Haru Invest was undergoing bankruptcy procedures, which created uncertainties regarding the initially promised rate of return for deposit products. Despite these challenges, he assured investors that Delio had devised plans to recover the incurred losses.
CEO Jeong emphasized Delio’s commitment to compensating for the losses by securing additional capital, including the possibility of a paid-in capital increase from a third party. This statement was intended to instill confidence among investors. However, specific details regarding the timing of repayment were not disclosed during the announcement.
Delio CEO Jeong Sang-ho assured stakeholders that although specific timing couldn’t be disclosed at present, the company was actively engaged in resolving the issues and would provide further updates through an investor representative meeting. The CEO expressed their commitment to addressing the concerns diligently and keeping investors informed about the progress.
Delio’s current predicament arose from the situation where the company had entrusted its customers’ funds to Haru Invest, which, in turn, had entrusted its own funds to B&S. When Haru Invest encountered difficulties with B&S and suspended withdrawals, the consequences rapidly affected Delio as well.
Following the suspension of withdrawal services, Delio implemented a telecommuting system to maintain operations. Nonetheless, CEO Jeong conveyed his determination to restore normalcy, stating that the company would transition to a regular working system starting from the following week. As per the information available on the Delio website, their total assets amount to $9.5 billion, consisting of BTC valued at $1 billion (41.7K), ETH valued at $200 million (118K), and ALTS valued at $8.1 billion. These asset figures were shared on Twitter by Whale Chart at the time of the withdrawal suspension.
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Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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