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South Korean Crypto Lending Giant Suspends Withdrawals Amidst Soaring Market Volatility

by BSCN

June 14, 2023

chain

The decision to halt withdrawals is a response to Haru Invest's recent suspension of deposits and withdrawals, aimed at protecting investors after a business error.

Delio Cites Market Volatility and Investor Protection

South Korean cryptocurrency lending company Delio has announced the suspension of withdrawals, citing increased market volatility, according to the local media outlet, Decenter.

Delio, which operates as a Virtual Asset Service Provider (VASP) and reports to financial authorities, holds significant amounts of BTC, ETH, and other alt-coins totaling $9.3 billion. Delio did not reveal when withdrawals will resume.

The decision to halt withdrawals comes as a response to the recent suspension of deposits and withdrawals by Haru Invest, a move made to protect investors following a business error. Delio CEO Jung Sang-ho stated that the suspension was a necessary measure to address the surge in withdrawal requests and maintain asset security. The exact details of Delio's transactional relationship with Haru Invest were not disclosed.

Delio's suspension led Upbit, one of Korea's largest crypto-asset exchanges, to reduce digital asset withdrawals from Delio as part of its investor protection measures. Upbit emphasized that its decision could be subject to change based on developments surrounding Delio's situation.

Delio expressed apologies for any inconvenience caused by the suspension while emphasizing the importance of safeguarding customers' assets. 

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