Crypto lender Delio warns against normal operations after asset seizures

The South Korean crypto lender had to suspend certain interest payments as part of a recent investigation that resulted in the seizure of company and customer assets.

South Korean crypto lending firm Delio has reportedly raised concerns about its ability to continue providing normal services to its customers after its assets were seized by a local financial regulator.

In a July 22 blog post translated from Korean, Delio said an ongoing legal battle with filers and a July 18 search and seizure of company assets resulted in the FSC seizing “all assets held by customers and the company, as well as other cold wallets and records.”

Delio explained that recent actions have made it difficult for the company to provide normal services, adding that it is also necessary to prevent the dispersal of Delio's assets for the benefit of depositors.

Delio has suspended interest payments for its deposit and vault users from July 24, according to the publication. The company added that services that require additional expenses, such as interest payments or operational expenses, have been suspended.

On June 14, Delio abruptly halted withdrawals and deposits on its platform “to safely protect client assets currently on deposit” – from market volatility caused by the halt in deposits and withdrawals at sister lending company Haru Invest.

Haru Invest himself had suspended withdrawals on June 13 after an investigation revealed that some information provided by his consignment operator B&S Holdings was false. The next day, Haru Invest announces the launch of legal proceedings...