BREAKING: Delio Transferred All $7 Million In Crypto Right Before The Incident

Key Points:

• Delio transferred $7 million in virtual assets before suspending deposits and withdrawals.
• CEO Jeong Sang-ho’s lack of disclosure sparked controversy.
• The company is being investigated for fraud, and victims have filed a case against the CEO.

According to Digital Asset, Delio moved all of its virtual assets worth 9.2 billion won (about $7 million) 7 hours before it ceased accepting deposits and withdrawals on June 14, according to Digital Asset, a crypto lending service.

Controversy is predicted since Deliona CEO Jeong Sang-ho did not alert anybody about the purchase. For instance, on June 14, shortly after the suspension of deposits and withdrawals, he stated:

“All rumors floating around in the community, such as customer virtual asset withdrawal, fraudulent accounting, and cashing using the employee’s personal name, are not true.”

The victims acquired the Delio deposit wallet address. The circumstances behind the company’s transfer of all virtual assets prior to the suspension of deposits and withdrawals, as well as the purpose of their subsequent usage, will only be revealed via a mandatory inquiry by the prosecution.

On June 14, 125 Bitcoin and 719 Ether were moved from the Delio wallet, and 4.97 million XRP was taken to three anonymous wallet addresses, according to the complete transfer information. Soon after the withdrawal, 0.98 Bitcoin, 4.66 Ether, and 9980 XRP were transferred back into the wallet, although this was a relatively minor sum in comparison to the withdrawal amount.

As of June 30, the firm was under investigation by the country’s Financial Services Commission (FSC). The FSC charged Delio with fraud, embezzlement, and breach of trust in connection with its unilateral decision to stop consumers’ deposits and withdrawals on June 14.

On June 16, the Delio victims filed a case with the Seoul Southern District Prosecutor’s Office, accusing CEO Jung Sang-ho of fraud and other offenses.

Haru Invest, Delio’s sibling company, halted withdrawals and deposits on June 13, alleging a problem with a consignment operator. Delio followed suit the next day, most likely owing to counterparty exposure. Haru Invest is said to have laid off the bulk of its employees after the announcement. According to the firm, it is presently pursuing legal action against its service provider.

CEO Jeong lied on the day of the Haru Investment deposit and withdrawal ban, saying:

“We have nothing to do with the Haru deposit and withdrawal suspension.”

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

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Harold

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