South Korean cryptocurrency exchange, Delio, has found itself in a financial quagmire following the Haru Invest incident. The company, which had halted withdrawals due to the scandal, has now sought legal recourse to initiate corporate recovery proceedings.
Delio’s Financial Crisis: A Ripple Effect of the Haru Invest Debacle
In the aftermath of the Haru Invest debacle, Delio, a prominent virtual asset deposit service, has taken legal steps towards corporate recovery. The company has filed an application with the Seoul Bankruptcy Court to initiate the process. This move comes as a response to the financial strain caused by the Haru Invest incident, which led to a halt in withdrawals.
Investors Rally for Class Action Lawsuit
Investors affected by the incident have rallied together, appointing a law firm to represent them in a class action lawsuit against Haru Invest and Delio. The law firm, LKB&Partners, is also handling the corporate recovery proceedings for Delio, indicating a complex intertwining of legal battles.
Delio Announces Phased Resumption of Withdrawals
On June 27, Delio announced the phased resumption of withdrawals for some virtual assets. The company’s CEO, Jung Sang-ho, had previously assured investors that Delio would secure sufficient capital to cover the withdrawals. However, the extent of the damage and the method of recovery were later revealed.
Despite the ongoing crisis, Delio confirmed that all virtual assets allowed for deposits and withdrawals remain unaffected. These include Cardano (ADA), Solana (SOL), Tezos (XTZ), Polkadot (DOT), Kusama (KSM), and Near (NEAR). However, once court proceedings begin in earnest, the withdrawal of these assets may be suspended.
Delio’s Ties with Haru Invest: A Billion-Dollar Connection
Delio, one of South Korea’s largest crypto lenders, reportedly holds approximately $1 billion in Bitcoin (BTC), $200 million in Ether (ETH), and around $8.1 billion in other cryptocurrencies. The company had entrusted a significant portion of client funds to Haru Invest, which is now facing bankruptcy.
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