South Korean crypto lending platform Delio plans to resume withdrawals after pausing them on June 14 due to counterparty contagion. In a meeting with investors, CEO Jung Sang-ho explained that Delio intends to secure as much capital as feasible to compensate and that user withdrawals would come in stages. However, no details regarding the specific repayment period, method, or amount of damage were disclosed.
Delio, one of South Korea’s largest crypto lending firms, claims to hold an estimated $1 billion in BTC, $200 million in ETH, and approximately $8.1 billion in altcoins. The company entrusted a sizable portion of clients’ funds to fellow South Korean crypto yield platform Haru Invest, which suspended deposits and withdrawals on June 13 following suspicions of false information provided by a consignment operator during an internal inspection process.
During a recent investor meeting, Sang-ho alleged that Haru is currently facing bankruptcy, making it difficult to guarantee the rate of return initially promoted for the deposit product. However, Sang-ho assured that there would be a plan to recover the losses.
On June 14, Haru filed a criminal complaint against its service operator, B&S Holdings, and plans to proceed with civil litigation. They apologized for causing concerns and inconveniences to their investors and customers, promising to continue working on the issue in a faithful manner.
Investors remain cautiously optimistic about the future of the crypto lending industry. The risks associated with entrusting funds to third-party platforms have been highlighted once again, raising questions about the security and transparency of such services. On the other hand, confidence in South Korea’s crypto platforms may be buoyed by Delio’s commitment to compensate users and an eventual recovery plan.
Although Delio’s case presents a point of concern, it is crucial to remember that the overall crypto lending landscape is vast and diverse, with various platforms providing different levels of security and transparency. While the pros of potential profit and easier access to capital are enticing, investors must weigh them against the cons of potential losses and lack of control over their funds. It is essential to remain vigilant and conduct thorough research before making decisions, ensuring that one is well-equipped to navigate the ever-evolving world of crypto lending.
Source: Cointelegraph
