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.
