South Korean Cryptocurrency Lender Puts A Hold On Withdrawals
Due to its connection to Haru Invest, which stopped its services, Delio is stopping withdrawals from its website.
South Korean cryptocurrency loan platform Delio has temporarily stopped withdrawals on its platform. It says it did this because another South Korean cryptocurrency company, Haru Invest, recently did the same thing.
The crypto lender said that they had no choice but to stop payments.
Delio’s Connection to Haru Invest
Delio told its users in a letter that it will temporarily stop withdrawals starting June 14. According to the company, the inevitable halt happened because Haru Invest’s decision to stop deposits and withdrawals caused the market to become more volatile and investors to become confused.
Delio also said that it had to do something to protect the funds of its customers. The company said it had no choice but to take this step, but it also said that withdrawals will stay on hold “until the above situation and its effects are resolved.” From the release, we can read:
“Delio will do our best to protect the assets of our customers while quickly grasping the facts and aftermath related to this situation. We will continue to inform you through announcements regarding the facts to be identified later, protection of customers’ assets, and measures for this.”
Block Media said that Delio CEO Jung Sang-ho said that the company got more calls to withdraw money after Haru Invest stopped providing services.
“Withdrawal requests are pouring in after the one-day incident, so we stopped withdrawing to calm the situation. There is a transactional relationship with Haru Invest, and the amount cannot be disclosed.”
In response to what Delio did, the biggest crypto exchange in South Korea, Upbit, put limits on how digital assets could be withdrawn from the crypto lending platform as “part of investor protection measures.”
Haru Invest Denies Rug Pull Rumors
Haru Invest told its clients that it would stop accepting deposits and withdrawals starting June 13 until further notice. The company says that the choice was made after internal investigations showed that one of its consignment operators gave false information.
After Haru Invest’s first announcement, there were reports that the company was going through a “rug pull.” Later, the platform put an end to the rumors by saying that it is “fully committed to fact-finding and responding to the related tasks” while also working to protect investors.
Later, the company gave another update that named the cargo operator as B&S Holdings, which used to be called Aventus. Haru Invest said it is currently talking with B&S Holdings about the issue. The cryptocurrency company also said it had already filed a criminal complaint against the company and was going to file a civil suit as well.
