South Korean crypto lender suspends withdrawals

South Korean crypto lender suspends withdrawals

Delio, a major South Korean cryptocurrency lending platform, has temporarily suspended withdrawals on its platform, claiming that the action was taken in connection with another local crypto company, Haru Invest, which recently did the same.

The crypto lender stated that the decision to suspend withdrawals was inevitable.

Delio's involvement with Haru Invest

In a notice to customers, Delio announced that it would temporarily suspend withdrawals from June 14th. According to the company, the inevitable suspension occurred due to increased market volatility and investor confusion after Haru Invest halted deposits and withdrawals.

Delio went on to say that it needed to take measures to protect client assets in its custody. While the company claimed the measure was unavoidable, it stated that withdrawals would remain suspended “until the above situation and its consequences are clarified.” An excerpt from the announcement reads:

"Delio will do our best to protect our customers' assets while quickly understanding the facts and consequences of this situation. We will continue to inform you through announcements about the subsequent facts to be determined, the protection of customer assets and measures therefor."

Meanwhile, Block Media reported that Delio CEO Jung Sang-ho said the company saw a surge in withdrawal requests after Haru Invest suspended its services.

"After the one-day incident, withdrawal requests are piling up, so we have stopped the withdrawal to calm the situation. There is a transaction relationship with Haru Invest and the amount cannot be disclosed."

South Korean crypto exchange giant Upbit responded to Delio's actions by restricting digital asset withdrawals to the crypto lending platform as "part of investor protection measures."

Haru Invest denies rug pull rumors

Crypto returns platform Haru Invest told investors that it would suspend deposits and withdrawals starting June 13 until further notice. According to the company, the decision came following an internal investigation that revealed that one of its trucking contractors had provided false information.

After Haru Invest's initial announcement, rumors began circulating that the company had come under pressure. The platform later exposed the speculation and said it was “fully committed to investigating the facts and responding to related tasks” while working to ensure investor protection.

The company later released another update with the name of the consignment company B&S Holdings (formerly Aventus). While Haru Invest stated that it is currently in discussions with B&S Holdings on the matter, the crypto company revealed that it has already filed a criminal complaint against the company and also plans to file a civil lawsuit.

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