Delio’s Creditors Filed In Bankruptcy Court After the Trouble With Haru Invest

Key Points:

• Delio, a virtual asset deposit service that stopped withdrawing due to the ”Haru Invest Incident”, has applied to the court to carry out company recovery proceedings.
• Investors appointed a law firm, and a class action lawsuit is also underway
• On the 27th, the withdrawal of some virtual assets will be resumed on the platform.

After getting into trouble with Haru Invest, South Korean cryptocurrency exchange, Delio has also applied for corporate recovery proceedings for the company with the Seoul Bankruptcy Court.

According to court and industry sources, on the same day, Delio’s creditors recently filed for business rehabilitation proceedings for the company with the Seoul Bankruptcy Court. It has been confirmed that creditors have applied for corporate recovery proceedings through LKB&Partners, a law firm currently conducting a class action lawsuit against Haru Invest and Delio.

On June 19, South Korean crypto lending platform Delio announced plans to reopen withdrawals after a pause on June 14. During a meeting with investors on June 17, CEO Jung Sang-ho explained, “[Delio] will secure as much capital as possible to cover” and “user withdrawals will happen in stages.” However, the method and extent of the damage were revealed.

On the 27th that the withdrawal of some virtual assets will be resumed in connection with the staking service, where deposits and leaves have been suspended, will be renewed. Targets continue to be Cardano (ADA), Solana (SOL), Tezos (XTZ), Polkadot (DOT), Kusama (KSM), and Near (NEAR). However, all the virtual assets the company allows for deposits and withdrawals have nothing to do with this situation. Once the court management begins in earnest, the withdrawal of these virtual assets will likely be suspended.

Delio is one of South Korea’s largest crypto lenders and claims to hold approximately $1 billion in Bitcoin (BTC), $200 million in Ether (ETH), and around $8.1 billion in cryptocurrencies. The company has entrusted many client funds to the South Korean crypto profit platform, Haru Invest.

On June 13, Haru halted deposits and withdrawals after claiming “some information provided by the shipment operator is suspected to be false” during an “internal check process”. During last week’s Delio investor meeting, Sang-ho alleged that Haru is currently facing bankruptcy.

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