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According to a recent report by local news outlet Decenter, South Korean cryptocurrency lending platform Delio will resume withdrawals, albeit without a fixed schedule, after suspending them on June 14th. At an investor meeting on June 17, CEO Jung Sang Ho explained, “[Delio] receive as much capital as possible to compensate” and that “withdrawal of funds by users will occur in stages.” However, no details regarding the specific repayment period, method and amount of damages were disclosed.
Delio is one of South Korea’s largest cryptocurrency lending firms and claims to own approximately $1 billion in bitcoin (BTC), $200 million in ether (ETH), and approximately $8.1 billion in altcoins. The firm has entrusted a significant portion of client funds to another South Korean cryptocurrency platform, Haru Invest.
On June 13, Haru suspended deposits and withdrawals after stating that “certain information provided by the delivery operator is suspected to be false” during the “internal verification process.” Cryptocurrency brings payouts. During a Delio investor meeting last week, San-ho stated that Haru is currently facing bankruptcy:
“It is difficult to guarantee the rate of return that was originally offered in the deposit product, but it is explained that there will be a loss recovery plan.”
On June 14, Haru filed a criminal complaint against its service provider, B&S Holdings, and said it plans to also continue the civil lawsuit. The company stated:
“Once again, we apologize for causing concern and inconvenience to our investors and clients. We will continue to work on this issue in good faith.”