BREAKING: Haru Invest, Delio Caused Damage Up To $230 Million For Investors

Key Points:

• Investors sue Haru Invest, Delio, and B&S for breaching the Capital Market Act.
• Loss to investors is estimated at up to $230 million, with recoverable assets expected to be less than half.
• Delio and Haru Invest face low receivable collection rates, raising concerns about their operations and integrity.

Investors who committed their crypto to Haru Invest and Delio sued the firms’ management for breaching the Capital Market Act. B&S was also included in the lawsuit.

Lawyer Lee Jeong-yeop of LKB & Partners, a legal firm representing the victims, assessed the loss to Haru Invest and Delio at up to 300 billion won ($230 million) in an interview with Block Media on June 5. Haru Investment is worth around 150 billion won, while Delio is worth approximately 100 billion won.

“The amount of damage to investors who entrusted their assets to the two companies is expected to reach up to 300 billion won. It is estimated to be less than 50%,” Lee said.

Less than half of the virtual assets controlled by the two organizations seem to be recoverable.

“The amount invested by Haru Invest in B&S is currently unknown. It seems to be at the level of several tens of billions of won,” Lee added.

Victims are undergoing separate rehabilitation processes for these corporations. Seo Dong-gi, a certified public accountant of Saeyeon Accounting Company and a business rehabilitation specialist, stated:

“The receivable collection rate in the case of Haru and Delio is remarkably low compared to other cases. In the case of a general financial institution, even a 20-30% loss is a huge loss. A loss of more than 50% can be a serious situation.”

Despite having a VASP (Virtual Asset Service Provider) license, Delio did not handle client assets correctly. While Haru Invest is a firm founded abroad, legal processes may be followed in Korea. Haru Invest and Delio were both held in Korea. According to lawyer Lee:

“It is possible to sell the company even during the corporate rehabilitation process. The difference between a self-sale and a sale during rehabilitation is ‘who is better for it.’ If you go through the rehabilitation process, a more powerful investigation than the prosecution’s investigation will take place.”

It is known that some Delio victims believe that the rehabilitation procedure does not help them recover from their injuries.

The storm has recently been brewing in the Korean cryptocurrency sphere as the country’s leading crypto lending firm, Delio, comes under examination. The Financial Services Commission (FSC) of South Korea has allegedly launched an inquiry into the agency’s activities due to accusations of fraud, embezzlement, and breach of belief.

Prior to the suspension decision, Delio’s administration apparently denied having any knowledge of Haru Invest investments. In light of recent events, this denial raises further concerns about Delio’s activities and integrity. The FSC probe is anticipated to shed further light on this issue.

Delio found discovered to have shifted all of its digital assets worth around $7 million in crypto only hours before suspending payments and withdrawals on its platform, as Coincu reported.

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

Coincu News