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Delio Suspends Crypto Interest Payments As Legal Turmoil Mounts

2 mins
Updated by Geraint Price
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In Brief

  • South Korean crypto lender, Delio, suspends interest payments amid legal troubles and allegations of fraud.
  • Delio had previously paused withdrawals on June 14, citing "heightened market volatility" due to Haru Invest halting withdrawals.
  • The lender's assets were confiscated on July 18, making it difficult to provide normal services and protect depositor interests.
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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 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.

How do you choose a cryptocurrency lending platform? Read our detailed guide here.

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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Harsh Notariya
Harsh Notariya is a journalist at BeInCrypto, who writes about various topics, including decentralized physical infrastructure networks (DePIN), tokenization, crypto airdrops, decentralized finance (DeFi), meme coins, and altcoins. Before joining BeInCrypto, he was a community consultant at Totality Corp, specializing in the metaverse and non-fungible tokens (NFTs). Additionally, Harsh was a blockchain content writer and researcher at Financial Funda, where he created educational reports on...
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