Haru Invest Scandal: Delio Under Investigation After The Crisis

Key Points:

• Delio, a South Korean crypto lending platform, is under investigation for fraud and embezzlement.
• Authorities have barred top Delio officials from leaving the country.
• The company admitted to depositing virtual assets on the same day withdrawals were suspended. Haru Invest, also implicated, is not a registered VASP.

According to Digital Asset, the South Korean Financial Services Commission is conducting a thorough investigation into charges of fraud, embezzlement, and breach of trust on Delio, a crypto lending platform, and withdrawals were banned on June 14.

The Korean Financial Services Commission’s Financial Intelligence Unit (FIU) seized Delio’s virtual asset operating and financial data today and is conducting an on-site examination.

Delio is also being investigated by South Korean authorities, according to reports. Prior to June 25, it was reported that South Korean authorities had barred top officials from leaving the country from B&S Holdings, Delio, and Haru Invest.

The company’s creditors previously filed to the Seoul Bankruptcy Court through the LKB & Partners law firm for the company’s bankruptcy reorganization process (the original court took over proceedings), and the law firm is presently bringing a class action lawsuit against Haru Invest and Delio.

Delio announced the suspension of withdrawals on June 14 due to Haru Invest, and South Korean authorities have barred top company officials from leaving the country. It said on June 26 that it would begin cryptocurrency deposit and withdrawal services on June 28 for the following coins: Cardano (ADA), Solana (SOL), Tezos (XTZ), Polkadot (DOT), Kusama (KSM), Near (NEAR).

The company gave a bogus explanation on the day of the suspension of daily deposit and withdrawal, claiming, “It has nothing to do with Haru,” but the firm confessed the following day that he deposited virtual assets on the same day.

Yet, since Haru is not registered with the government as a VASP, it is not subject to FIU control; nonetheless, its management, like Delio, was sued by the prosecution.

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Harold

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