In the fast-paced digital era, cryptocurrency has been the centre of attention with its exponential growth and popularity. However, the volatile nature of the crypto market makes it the victim of new government-imposed rules and regulations. The journey of cryptocurrency to become a global currency often witnesses major setbacks leaving its community in an absolute state of shock and uncertainty.
The recent cryptocurrency news about Delio’s assets seizure by the South Korean Financial Service Commission has sent shock waves across the community. Delio, one the leading crypto lending firms in South Korea, had to freeze its normal services to the clients amidst the legal battle with the local financial regulator.
The company made a public announcement on 24th of July about the seizure of its assets and those of its customers as a result of the recent ongoing investigation of Delio.
Delio’s Legal Battle
Delio is one of South Korea’s prominent cryptocurrency lending platforms, founded in 2018. It offers a variety of services to its customers from custody to lending to the staking services.
The recent news shows Delio to be in a troublesome situation with the Financial Service Commission (FSC) charging Delio with fraud, embezzlement, and breach of trust. As a result of this accusation the assets of the company and its customers have been seized putting a ban on Delio’s CEO, Jeong Sang-Ho, and others from fleeing the country.
As a result of the investigation, the company had to pause its normal services to the client and confirmed that the activities demanding expenses like interest payments or operational costs have to be put on a halt.
What started this turmoil?
The issue originated on the 14th of June when Delio abruptly took a decision to halt withdrawals and deposits on its platform claiming to protect the customer’s assets against the ever-changing market dynamics. This was a follow-up decision after its sister company, Haru Invest resorted to similar measures on the 13th of June as a result of the false information provided by its consignment operation leading to an investigation.
The CEO of Delio, Jeong Sang-Ho made an announcement to resume withdrawal on the platform being vague about its timeline three days after the decision to halt. However, on the 27th of June, the company was seen to initiate withdrawals for only a few of its staking customers.
Nevertheless, nothing stopped the Financial Service Commission (FSC) from investigating the matter and eventually suing Deio for its sudden suspension of the withdrawal as per the reports for Digital Assets on the 30th of June.
Amidst the continuous evolution in the crypto market, there are always certain innovations shining bright and certain juggling with the local regulators and authorities.
The news on the assets seizure of the cryptocurrency lending platform, Delio well exhibits the uncertainty and volatility clouding the crypto market. This legal turmoil extended to the heights of the company having to temporarily suspend all its normal activities of serving the clients. Without any hesitation, this raises a question of Delio’s stability in the future and the capability to serve its customers again.
Like every other legal battle that the crypto community finds itself in, this is undoubtedly concerning too. It leaves the investors and enthusiasts in a state of alarm but also focuses on the importance of thorough research and due diligence before diving into any financial commitments.
Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
