South Korean crypto lender Delio has said it may no longer be able to continue trading after its assets were seized by local regulators.
For over a year, the crypto community has witnessed crypto lenders or exchanges shutting down withdrawals and even shuttering operations. Now Delio becomes the latest addition to the list.
Delio Halts Interest Payments Due to Legal Battles
Delio announced the suspension of interest payments through a notice citing difficulty in providing normal services. Additionally, the crypto lender informed its users that it wants to avoid a scattering of its assets.
The instability with Delio first came to light when it announced a pause to withdrawals on June 14. The crypto lender blamed “heightened market volatility” due to Haru Invest suspending its deposits and withdrawals the previous day.
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Eventually, depositors filed a lawsuit against the crypto company alleging fraud. Moreover, South Korea’s watchdog, the Financial Service Commission, also started a probe against Delio for “fraud, embezzlement, and breach of trust.”
Delio’s notice mentions that the prosecution confiscated all its assets, cold wallets, and digital ledgers on July 18. The crypto lender wrote:
This has made it difficult to provide normal services, and there is also a need to protect the interests of all depositors by preventing the scattering of Delio’s property.
Accordingly, in accordance with Article 5 of the Terms of Service and Article 8 of the Deposit Terms of Use, we inform you that some services that inevitably require additional expenses such as operating expenses and payment of interest have been suspended.
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