South Korea’s top crypto lending company Delio, which was embroiled in the Lugpool controversy suspended withdrawals two days ago. Now their CEO recently announced the plans to resume withdrawals in phases. While Decenter shared the announcement aimed to appease investors, specific details regarding the repayment period, method, and extent of the damage were not disclosed.
Delio Resumes Withdrawals
During the investor briefing, Delio CEO Jeong Sang-ho informed attendees that the company would gradually resume withdrawal services. However, the CEO emphasized that the situation remained fluid, as it depended on the circumstances surrounding Haru Investment and B&S, two entities closely associated with Delio’s operations.
Jeong acknowledged that Haru Invest was undergoing bankruptcy procedures, leading to uncertainties in guaranteeing the initially promoted rate of return for deposit products. Despite the challenges, the CEO assured investors that plans were in place to recover the losses incurred.
To compensate for the losses, CEO Jeong expressed Delio’s commitment to securing as much capital as possible, including considering a paid-in capital increase from a third party. While this statement aimed to instill confidence among investors, the CEO did not disclose specific details regarding the timing of repayment.
While I cannot disclose specific timing at this moment, rest assured that we are working diligently to address these issues and communicate further updates through an investor representative meeting.” – Delio CEO Jeong Sang-ho
Background Of Case
The predicament Delio finds itself in stems from entrusting some of its customers’ funds to Haru Invest, which, in turn, had entrusted its own funds to B&S. When Haru Invest faced issues with B&S and halted withdrawals, the repercussions quickly spread to Delio.
Subsequently, Delio temporarily suspended its own withdrawal services and transitioned to a telecommuting system. However, CEO Jeong expressed his will to normalize the company, saying, “From next week, we will switch to a normal working system.”
According to Delio website, they have a total of $9.5B in Assets. Whale Chart shared their assets on Twitter upon suspension:
- BTC: 41.7K ($1B)
- ETH: 118K ($200M)
- ALTS: $8.1B.
Also Read: Haru Invest Possible Exposure To FTX…
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Source: https://coingape.com/just-in-delio-ceo-announces-phased-withdrawal-resumption/