FSC Files Fraud Charges Against Delio; Haru Invest Suspends Deposits and Withdrawals on June 13
The South Korean Financial Services Commission (FSC) is currently investigating crypto lending firm Delio, according to local news portal Digital Asset. The FSC has lodged charges of fraud, embezzlement, and breach of trust against Delio in response to its temporary suspension of customer deposits and withdrawals, which was implemented on June 14.
During a special stockholders’ meeting on June 17, Delio CEO Jung Sang-ho announced that the company would resume withdrawals. Subsequently, on June 27, Delio began accepting withdrawal requests for specific staking services.
Subjected to Travel Restrictions:
In an effort to make amends, Sang-ho assured that Delio would seek to acquire a substantial amount of capital for compensation. Currently, Delio stands as one of South Korea’s leading crypto lenders with approximately $1 billion in Bitcoin and $8.1 billion in other cryptocurrencies. As prosecutors conduct their investigation, orders have been issued to restrict the company’s CEO and top executives from leaving the country.
On June 13, Haru Invest, a subsidiary of Delio, temporarily suspended deposits and withdrawals due to an issue with a “consignment operator.” Following this, Delio took a similar action the following day, possibly due to concerns about counterparty exposure. As per reports, a significant number of Haru Invest employees have been laid off following the incident. Currently, the firm is in the process of suing its former service provider.
As a registered virtual asset service provider (VASP), Delio falls under the supervision of the country’s Financial Intelligence Unit. However, industry reports indicate that Haru Invest is not considered a VASP and is not subject to regulatory oversight. Interestingly, it is alleged that Delio’s management denied any association with Haru Invest shortly before the decision to suspend withdrawals.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
Follow Cryptos Headlines on Google News
Join Cryptos Headlines Community
