South Korean Crypto Lender Suspends Withdrawals

Delio, a major South Korean cryptocurrency lending platform, has suspended withdrawals temporarily on its platform, claiming that the measure was taken in connection with another local crypto company, Haru Invest, which recently did the same.

The crypto lender stated that the decision to suspend withdrawals was unavoidable.

Delio’s Exposure to Haru Invest

In a notice to customers, Delio announced that it will temporarily suspend withdrawals starting from June 14. According to the firm, the inevitable suspension happened following increased market volatility and investor confusion after Haru Invest stopped deposits and withdrawals.

Delio further said it had to take action to safeguard customer assets in its custody. While the company claimed the measure was unavoidable, it explained that withdrawals will remain suspended “until the above situation and its aftermath are resolved.” An excerpt from the announcement reads:

“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.”

Meanwhile, Block Media reported that Delio CEO Jung Sang-ho said the firm experienced an uptick in withdrawal requests after Haru Invest suspended 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.”

South Korean crypto exchange giant Upbit reacted to Delio’s action by restricting digital asset withdrawals to the crypto lending platform as “part of investor protection measures.”

Haru Invest Denies Rug Pull Rumors

Crypto yield platform Haru Invest informed investors that it would suspend deposits and withdrawals beginning from June 13 until further notice. According to the company, the decision came following internal investigations, which revealed that one of its consignment operators provided false information.

After Haru Invest’s initial announcement, rumors were making the rounds about the company experiencing a rug pull. The platform later debunked the speculations, stating it is “fully committed to fact-finding and responding to the related tasks” while also working to ensure investor protection.

The company later provided another update naming the consignment operator B&S Holdings (formerly Aventus). While Haru Invest stated it is currently holding talks with B&S Holdings over the matter, the crypto firm revealed that it already initiated a criminal complaint against the entity and was also planning to file a civil action.