South Korean crypto lending company Delio is under investigation by regulators

according to a reports Delio, a South Korean crypto lending firm, is currently under investigation by the country’s Financial Services Commission (FSC) as of June 30, according to local news outlet Digital Asset. The commission alleges fraud, embezzlement and breach of trust related to Delio’s unilateral decision to suspend users. Deposits and withdrawals on June 14th.

During an extraordinary investor meeting on June 17, Jang Sang-ho revealed that the company would resume withdrawals, although there was no definite schedule at that time. On June 27, the company launched withdrawals for a portion of its staking services.

Sang-ho said, “(Delio) will secure as much capital as possible to compensate.” Delio is currently one of the largest crypto lenders in South Korea, holding an estimated $1 billion in bitcoin (BTC), $200 million in ether (ETH), and $8.1 billion in various altcoins. Its CEO and management staff are reportedly barred from leaving the country pending an investigation by prosecutors.

On June 13, Dalio’s sister firm, Haru Invest, suspended withdrawals and deposits, citing a problem with a “consignment operator”. This move prompted Dalio to do the same the next day, possibly due to contact with the counterparty. Since the announcement, Haru Invest has reportedly cut most of its workforce. The company says that it is currently taking legal action against its service partner.

As a Registered Virtual Asset Provider (VASP), Delio is regulated by the country’s Financial Intelligence Unit. However, Haru Invest is reportedly not a VASP and therefore does not fall under the purview of the regulators. It was alleged that Delio management had denied exposure to Haru Invest shortly before its decision to suspend withdrawals.

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