Korean-based cryptocurrency lending service, Delio, has temporarily suspended customer withdrawals as a consequence of financial irregularities involving crypto investment firm, Haru.
In an update on its website, Delio revealed that it had paused withdrawals due to its funds being inaccessible in Haru. This follows the recent suspension of deposits and withdrawals by Haru itself on June 13, in response to undisclosed complications with one of its service providers.
Haru, a platform that offers users up to a 12% return on its Earn Plus product, has yet to provide a detailed explanation regarding the ongoing issues with its service provider. This lack of communication and the subsequent suspension of services have led to speculation and concerns among its users, resulting in a significant surge in withdrawal requests.
Delio's CEO, Jung Sang-ho, confirmed this increase in a recent interview with Money Today. He noted that the difficulties Delio was facing resulted from a rapid increase in withdrawal requests following Haru's suspension. Jung Sang-ho also acknowledged a transactional relationship between Delio and Haru, but he refrained from commenting on the specific details, including the total amount involved.
Delio's platform offers a range of cryptocurrency lending and borrowing services, with advertised returns of up to 10.7%. According to the claims made on its website, Delio has processed transactions involving significant volumes of cryptocurrencies including 41,700 Bitcoin (valued at approximately $1 billion), 118,000 ether (valued at around $205 million), and $6.2 million worth of various altcoins.
The temporary suspension of Delio's withdrawal services has come as a shock to many in the Korean cryptocurrency market, highlighting once again the inherent risks and volatility associated with the industry. The move follows a string of similar incidents involving cryptocurrency platforms globally, underscoring the need for increased transparency, regulation, and security within the cryptocurrency market.
These incidents have drawn increased scrutiny from regulatory authorities and have prompted calls for more robust oversight and legislation to protect investors. In many parts of the world, regulators are already working on new frameworks to address these issues and ensure greater security for investors.
The events involving Delio and Haru also demonstrate the interconnected nature of many cryptocurrency platforms and services. Problems at one platform can quickly spread to others, causing a ripple effect throughout the industry. This connectivity means that issues at a single platform can lead to broader instability and lack of trust in the market as a whole.
As Delio works to resolve the current situation, users of the platform are left in a state of uncertainty, with their funds temporarily locked. The incident underscores the importance of due diligence and careful risk assessment when choosing a cryptocurrency platform, especially those offering higher-than-average returns.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
