- Delio, a South Korean crypto firm, has suspended withdrawals from its platfprm.
- The resolution to halt withdrawals points to Haru Investments’ recent suspension and cites protection of investor funds as the reason.
- The withdrawal suspension has elicited mixed reactions in the crypto world, with customers wallowing in deep anxieties.
Delio, a South Korean crypto lending platform, has decided to suspend withdrawals due to market volatility. The unexpected decision has left many investors needing clarification, raising concerns about the reliability and stability of the company.
Delio has been famously known for its trustworthiness and transparency in offering crypto borrowing and lending services to needy clients. However, this sudden decision to halt withdrawals has disrupted this good reputation and triggered anxieties among many of its clients.
What are the issues leading to this withdrawal suspension?
The freezing of withdrawals by Delio has caused major tremors throughout the crypto community. The news was shared through a statement written in Korean where the firm noted that they have,
“inevitably suspend withdrawals temporarily as of June 14….. due to a “sharp increase in market volatility and confusion among investors.”
The firm added that they will still maintain their services of protecting their customers’ assets as they adjust to the new trend in volatility.
The statement:
“Delio will do its best to protect the assets of our customers while quickly grasping the facts and aftermath related to this situation,”
The statement begins by giving an example of Haru Investment, suspended a few weeks ago, with increased volatility and increasing confusion among investors as the main reasons for their decision as they monitor the crypto market.
The Delio news has set ablaze the cryptocurrency news moderators, too, with many taking into their tweeter accounts to report the unraveling events in the Korean crypto markets where at least two crypto agencies have halted withdrawals.
One fan and regular contributor to crypto news tweeted:
“This is the latest in a string of crypto lending platforms to have suspended withdrawals in recent weeks.”
This trend of restricting withdrawals by Korean firms has taken shape over the last few days since SEC launched a landmark case against Coinbase and Binance.US in the US.
Apart from Delio and Haru’s withdrawal cases, Upbit, another South Korean crypto exchange, restricted the withdrawal of their assets in response to Haru’s suspension.
The users of the Delio platform have shown dissatisfaction by overreacting to the recent restriction on asset withdrawals.
What next for Delio and the crypto world
Looking into the future, in the same statement, Delio assured its investors of their commitment to assess the situation as the events unravel in the crypto industry to preserve customers’ welfare.
The frozen withdrawals have warranted a situation where the crypto industry and investors eagerly follow Delio’s next stage of mitigating the freezing process and regaining customers’ trust again.
