Delio, a South Korean cryptocurrency financial company, has said that as of July 24, it will stop providing various services and paying users interest on virtual assets.
As of July 24, Crypto-finance Firm Delio Will Refuse to Pay Interest on Virtual Assets
Delio announces the suspension of interest payments on virtual assets for various services and users. An interim disposal decision has been reached, and hearings on reinstatement lawsuits brought by several depositors against the platform are currently taking place.
In addition, the prosecutor’s office confiscated all of the customer’s and company’s property as a result of a search and seizure on July 18, 2023, including refrigerators and other items. Normal services have been difficult to offer as a result, and it is important to safeguard the interests of all depositors by halting the distribution of Delio’s assets.
In accordance with Article 5 of the Terms of Service and Article 8 of the Deposit Terms and Conditions, Delio has consequently stated that they have discontinued several services and interest payments, which will unavoidably result in additional expenditures, such as operating costs.
Delio Under Investigation
Delio is situated in South Korea and is under investigation. The Financial Services Commission (FSC) of South Korea is looking into the cryptocurrency loan firm Delio for alleged fraud, embezzlement, and breach of trust.
An investigation was launched after Delio decided on its own, on June 14, to stop accepting customer deposits and withdrawals. This move alarmed investors, according to a report from the local news source Digital Asset. The management of the company has come under fire for denying any connection with or exposure to its ailing sister lender, Haru Invest, prior to its suspension.
Delio’s CEO, Jung Sang-ho, declared that the company would gradually begin withdrawals without providing a set schedule during an extraordinary meeting of investors held on June 17. On June 27, Delio started allowing partial withdrawals for some of its staking services to reassure investors of its promise to guarantee funds for recompense.
%s Comment