South Korean OJK Investigate Crypto Loan Company Delio, CEO Banned

Liputan6.com, Jakarta – According to a report by local South Korean media, South Korean crypto lending firm Delio is under investigation by the South Korean Financial Services Commission (FSC) on June 30.

Reported from CointelegraphMonday (3/7/2023), FSC alleges fraud, embezzlement and breach of trust related to Delio’s unilateral decision to suspend user deposits and withdrawals on June 14.

During an extraordinary investor meeting on June 17, Delio CEO Jung Sang-ho explained the company will proceed with the recall, although there is no fixed schedule at the time. On June 27, the company started opening withdrawals for some of its staking services.

The CEO and management staff were reportedly barred from leaving the country pending an investigation by prosecutors. On June 13, Delio’s sister company, Haru Invest, suspended withdrawals and deposits.

The move prompted Delio to do the same the next day, most likely due to the exposure from Haru Invest.

Since the announcement, Haru Invest has reportedly cut most of its staff. The company says it is currently taking legal action against its service partners.

As a registered virtual asset provider (VASP), Delio is regulated by South Korea’s Financial Intelligence Unit. However, Haru Invest is reportedly not a VASP and therefore does not fall under the jurisdiction of the regulator.

Allegedly Delio’s management rejected Haru Invest’s exposure shortly before its decision to suspend the withdrawal.

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