Two South Korean Crypto Platforms Halt Withdrawals

Two South Korean-linked crypto sites suspended withdrawals within 24 hours, highlighting the persistent hazards in the digital-asset sector following a slew of blowups triggered by a market meltdown last year.

According to one of them, Delio, the temporary suspension started on Wednesday and was brought on by the stoppage of withdrawals and deposits at the other company, Haru Invest. Delio also blamed “market volatility and increased confusion” for this.

Following its action, Haru Invest tweeted that it was suing a company for allegedly giving management reports with false information. The company had initially cited a problem with a service provider for its decision.

According to Delio’s Chief Executive Officer James Jung, there was an unexpected increase in withdrawals on their part following Haru Invest’s suspension of withdrawals. So as to calm the issue, they have momentarily stopped withdrawals.

Both platforms boasted double-digit percentage yields. On its website, Delio offers a variety of services, including lending, deposits, and staking, which involves locking up tokens to help blockchains function in exchange for rewards. According to Haru Invest, it uses a “algorithmic trading model” to produce profits.

When a $1.5 trillion digital asset crash exposed hazardous business practises and forced the collapse of exchanges like FTX and lending businesses like Celsius Network in 2022, cryptocurrency investors who had been lured in by high profits suffered an unpleasant awakening.

A number of virtual coin-related scandals occurred in South Korea, with the most notable being the capture of former fugitive Do Kwon after the virtual currencies he invented wiped at least $40 billion in a crash just over a year ago.

Claimed Transactions

Delio’s problems and Haru Invest’s problems seem to be less severe. According to Delio’s website, the company has accumulated transactions worth a total of $1 billion in Bitcoin and $195 million in Ether. According to its website, as of April 18, Haru Invest managed assets worth less than $1 billion.

Delio is one of three dozen cryptocurrency platforms in South Korea having a virtual-asset service provider license. The company’s website, Haru Invest, claims that it has offices in Seoul and Singapore.

Both companies said that the latest prohibits are part of an effort to protect customer funds. Hyungsoo Lee, the CEO of Haru Invest, declined to comment when contacted.

On Thursday morning, it appeared that the Singapore office of Haru Invest was vacant. A number of Singaporean-affiliated cryptocurrency businesses failed last year, prompting the island to suggest restrictions on retail investors’ access to the market.

In 2023, the cryptocurrency markets made some progress, but they are still in a precarious situation due in part to the aggressive regulation of the sector by US regulatory bodies.

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