Delio Stop Paying Interest Some Services And Virtual Assets Starting July 24

Key Points:

• Troubled crypto-finance company Delio announced it would suspend some services and pay interest on virtual assets.
• The notice will be adequate starting July 24 for all users on the platform.
• The company is currently temporarily suspending operations because the management agency has confiscated all documents and assets from July 18.

According to the official announcement, Delio, a South Korean crypto-finance company, has announced that it will suspend some services and stop paying interest on virtual assets to users on July 24.

Delio announces the suspension of virtual asset interest payments for some services and users for the following reasons. Hearings on reinstatement cases filed by several depositors against the platform are underway, and an interim disposition decision has been made.

In addition, due to a search and seizure on July 18, 2023, all property owned by the customer and the company, refrigerators, and other things were confiscated by the prosecutor’s office. This has made it challenging to provide normal services, and it is also necessary to protect the interests of all depositors by preventing the dispersion of Delio’s assets.

Accordingly, Delio announced that they have suspended certain services and interest payments, which will inevitably require additional costs, such as operating costs, based on Article 5 of the Terms of Service and Article 8 of the Deposit Terms and Conditions.

South Korea-based Delio is under scrutiny as the country’s Financial Services Commission (FSC) investigates the crypto lending company for alleged fraud, embezzlement, and breach of trust.

According to a report from local news outlet Digital Asset, the investigation stems from Delio’s unilateral decision to suspend user deposits and withdrawals on June 14, causing concern among investors.

The company’s management is also under scrutiny for denying any connection or exposure to its troubled sister lender, Haru Invest, before its suspension.

During an extraordinary meeting of investors held on June 17, Delio’s CEO, Jung Sang-ho, announced that the company would gradually resume withdrawals without giving a fixed schedule.

Partial withdrawals for some of its staking services began on June 27, as Delio sought to assure investors of its commitment to guarantee capital for compensation.

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