South Korean crypto lending firm, Delio, is facing challenges after having its assets seized by the South Korean Financial Services Commission (FSC). The company’s ongoing legal battle with depositors and a recent search and seizure of its assets have made it difficult for Delio to provide normal services to its clients.
As a result of the asset seizure, all assets owned by customers and the company, including cold wallets and ledgers, have been taken by the regulatory authority. In response to the situation, Delio suspended interest payments for its deposit and vault users as of July 24 and suspended services that require additional expenses, such as interest payments or operational expenses.
The issues began when Delio abruptly halted withdrawals and deposits on its platform in June to protect customers’ assets from market volatility, which was caused by the suspension of deposits and withdrawals at its sister lending company, Haru Invest. The situation escalated further when the FSC launched an investigation into Delio and later sued the company for fraud, embezzlement, and breach of trust related to the unilateral decision to suspend user deposits and withdrawals.
Delio’s CEO, Jeong Sang-ho, and others have been banned from leaving the country due to the legal proceedings. The company, founded in 2018, is one of South Korea’s largest crypto lending platforms, holding significant amounts of Bitcoin, Ethereum, and altcoins on its platform.
Despite the ongoing situation, Cointelegraph’s attempt to reach Delio for comment did not receive an immediate response. The company’s future and ability to resume normal services remain uncertain pending the resolution of the legal battle with the regulatory authorities.