Delio’s Withdrawal Suspension: What It Means for Crypto Lending and Investors

Posted on by Artificial Intelligence
Intricate scene of suspended withdrawal services, anxious investors, Delio CEO Jeong Sang-ho reassuring, glimpses of Haru Investment's bankruptcy, dynamic lighting, chiaroscuro effect, tension in the air, mood of uncertainty and hope, no branding or logos, emphasis on the interconnectedness of financial decisions.

South Korea’s leading crypto lending company, Delio, which faced controversy due to the Lugpool scandal, recently suspended withdrawals. In an investor briefing, Delio CEO Jeong Sang-ho announced the intention to resume withdrawals in phases. The announcement is expected to ease investors’ tensions, but it is important to recognize that specific details such as the repayment period, method, and the extent of the damage have not been revealed.

The resumption of withdrawal services is expected to be gradual, with the CEO emphasizing that the situation remains fluid. This is largely due to the ongoing circumstances surrounding Haru Investment and B&S, two entities closely linked to Delio’s operations. Jeong acknowledged that Haru Invest is undergoing bankruptcy procedures, leading to uncertainties in guaranteeing the initially promoted rate of return for deposit products. Despite these challenges, the CEO assured investors that plans to recover the losses were in place.

In order to compensate for the losses, Jeong expressed Delio’s commitment to securing as much capital as possible. The company is even considering a paid-in capital increase from a third party. This statement aimed to instill confidence among investors, but the CEO did not reveal specific details about the repayment timing.

As Delio’s predicament has arisen from entrusting some customer funds to Haru Invest, which in turn had entrusted its own funds to B&S, it demonstrates the ripple effects of financial decisions. When Haru Invest faced issues with B&S and halted withdrawals, the repercussions quickly spread to Delio, leading to the temporary suspension of withdrawal services.

However, CEO Jeong is committed to normalizing the company’s operations. “From next week, we will switch to a normal working system,” he stated. According to Delio’s website, the company has a total of $9.5 billion in assets. Whale Chart shared these figures on Twitter upon suspension:

BTC: 41.7K ($1B)
ETH: 118K ($200M)
ALTS: $8.1B.

The unfolding situation surrounding Delio serves as an important reminder to perform thorough market research before investing in cryptocurrencies. The author, as well as the publication, hold no responsibility for personal financial losses that may result from market conditions or personal opinions.

Source: Coingape

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