Key Points:
- Haru Invest and Delio investors are planning to file class action lawsuits against the crypto companies as a consequence of the freezing of crypto valued at billions.
- Approximately 400 Haru investors and 150 Delio investors joined in a KakaoTalk group conversation to prepare for litigation.
- Investors are likely to sue cryptocurrency companies for a variety of allegations, including fraud, via the legal firm LKB & Partners.
According to a local media source on June 16, cryptocurrency companies Haru Invest and Delio investors are planning class-action lawsuits after they abruptly froze consumer deposits and withdrawals.
410 Haru Invest investors and 120 Delio investors formed a Kakao group conversation on Friday to plan for a lawsuit. They are likely to sue the platforms over suspected “fraud.”
Both platforms have provided “deposit” services, in which clients may earn interest on their virtual assets if they deposit a particular amount for a defined period of time. Haru Invest and Delio have respectively provided maximum annual interest rates of 12% and 10%.
Haru Invest banned deposits and withdrawals on Tuesday, citing inaccurate information given by its consignment operator, B&S Holdings. Moreover, Haru Invest has filed a criminal complaint against B&S Holdings.
Delio suspended withdrawals owing to market volatility, while Haru Invest suspended deposits and withdrawals. Delio is said to have placed a particular quantity of cryptocurrency at Haru Invest. If the situation worsens, the company intends to host an investor meeting on Saturday.
As the situation worsens, Delio intends to conduct an investors’ meeting on Saturday morning at its offices in Seoul’s Gangnam District.
“I sincerely apologize to the investors who believed in us and used our service. We will report our current situation to investors and discuss feasible ways to recoup investments,” said Delio CEO Jung Sang-ho.
Meanwhile, CryptoQuant CEO Ki Young Ju said that Haru Invest might have exposure to the troubled cryptocurrency exchange FTX. Haru Invest, according to OXT Research, uses FTX. If the claim is correct, the corporation has been keeping its investors in the dark for about a year.
South Korea is one of the biggest crypto marketplaces, with billions of dollars transacted every day on the country’s many crypto platforms. Following the demise of Luna last year, the country has tightened its crypto regulations.
As Coincu reported, Delio formally declared that it would conduct a news conference on June 17 to explain the withdrawal halt to investors. The news conference was called to apologize to shareholders and explain the company’s present issues.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Harold
Coincu News
Source: https://news.coincu.com/195747-haru-invest-delio-action-lawsuits/