Haru Invest, Delio Face Class Action Lawsuits As Billions In Crypto Frozen

Crypto yield platform Haru Invest suspended withdrawals and deposits and crypto lending firm Delio halts withdrawals. As a result of crypto worth billions frozen, Haru Invest and Delio investors are preparing to bring class action lawsuits against the crypto firms.

South Korea is one of the largest crypto markets, with crypto assets worth billion traded daily on several crypto platforms in the country.

Investors of Haru Invest and Delio Prepares Class Action Lawsuits

Crypto firm Haru Invest and Delio investors preparing for class-action lawsuits after they suddenly suspended customer deposits and withdrawals, as per a local media report on June 16.

Over 400 investors of crypto earn platform Haru Invest and 150 investors of crypto lending platform Delio participated in a KakaoTalk group chat to prepare for lawsuits. Investors will probably sue the crypto platforms for charges including fraud through law firm LKB & Partners.

Haru Invest and Delio offer earn services that allow users to earn yields by depositing their crypto assets on the platforms. Haru Invest and Delio offered maximum yields of 12 percent and 10 percent, respectively.

On Tuesday, Haru Invest suspended deposits and withdrawals, stating that its consignment operator B&S Holdings provided false information. In addition, Haru Invest has filed a criminal lawsuit against B&S Holdings.

It followed Delio to halt withdrawals due to market volatility amid Haru Invest’s suspension of deposits and withdrawals. Delio has reportedly deposited a certain amount of crypto assets in Haru Invest. The firm plans to hold an investors’ meeting on Saturday as the situation turns serious.

“I sincerely apologize to the investors who believed in us and used our service,” said Delio CEO Jung Sang-ho. “We will report our current situation to investors and discuss feasible ways to recoup investments.”

Also Read: Terra’s Do Kwon Bail Approved By Montenegro High Court, Extradition To South Korea

Haru Invest Possible Exposure to FTX

Meanwhile, CryptoQuant CEO Ki Young Ju said Haru Invest could have exposure to beleaguered crypto exchange FTX. OXT Research reported that Haru Invest used FTX. If the report is true, the company has kept its investors in the dark for almost a year.

According to on-chain data, Haru Invest’s two transactions to FTX are the most significant transfers to its Bitcoin address. It happened during the Terra-LUNA crash in 2022.

Also Read: US SEC Lawsuit Against Terraform And Do Kwon Could Be Dismissed

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Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

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