South Korean Crypto Lender Delio is Set to Reopen Withdrawals

The South Korean digital asset lending powerhouse, Delio, plans to reactivate withdrawals after they were halted on June 14th, although a definitive timeline is yet to be announced.

The news was revealed by the South Korean news portal Decenter, which cited comments from Delio Chief Executive Officer (CEO) Jung Sang-ho. 

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While specific information about the recovery duration, procedure, or extent of the damage was not disclosed, Sang-ho assured investors that Delio aims to "secure as much capital as possible to compensate" and that the users' withdrawals would proceed in stages.

Delio is recognized as a significant player in the crypto lending sector in South Korea, with claims of possessing around $1 billion in Bitcoin (BTC), $200 million in Ether (ETH), and approximately $8.1 billion in various altcoins. 

At Delio's recent investor meeting, Sang-ho insinuated that Haru could be on the brink of insolvency, stating:

It is difficult to guarantee the rate of return that was initially promoted in the deposit product, but there will be a plan to recover the loss.

Interestingly, Delio had entrusted a substantial fraction of its clients' funds to Haru Invest, another South Korean cryptocurrency yield platform.

Haru Invest, which reportedly caters to over 80,000 users and has facilitated 9.8 million in crypto earn payouts, abruptly ceased deposits and withdrawals on June 13th.

The platform alleged irregularities in "certain information provided by a consignment operator," which was supposedly discovered during an internal audit.

Notably, on June 14th, Haru lodged a criminal complaint against its service operator, B&S Holdings, intending to pursue civil litigation. In a company statement, Haru apologized for the distress and inconvenience caused to investors and customers, pledging to continue addressing the issue responsibly.

In other reopening news, DeFi platform Sturdy Finance announced the relaunch of its stablecoin market, which was closed after a security incident.

The turbulent period of halted withdrawals at Delio appears to be nearing its end as the crypto lending titan strives to secure capital and plans for phased compensations.