BlockNews
  • Crypto
  • Finance
  • Politics
  • Memecoins
  • NFT
  • Technology
  • Opinion
No Result
View All Result
FOLLOW
BlockNews
  • Crypto
  • Finance
  • Politics
  • Memecoins
  • NFT
  • Technology
  • Opinion
No Result
View All Result
BlockNews

Delio Grapples with Regulatory Challenges Amidst Fraud Allegations

by BlockNews Team
July 4, 2023
in Business, Crypto, Media, Social
A A
Delio Grapples with Regulatory Challenges Amidst Fraud Allegations
1
SHARES
Share on TwitterShare on Reddit
  • The leading Korean cryptocurrency lending platform, Delio, is under the microscope of the Financial Services Commission (FSC) amidst claims of deceit, embezzlement, and faith breach.
  • Delio’s sudden freeze on all deposits and withdrawals sent shockwaves through its user base, creating a climate of doubt and concern.
  • Delio’s sister firm, Haru Invest, which isn’t subject to similar regulations, could potentially be a key player in the ongoing investigation.

South Korean crypto lending company Delio is currently in hot water. The firm found itself facing heavy scrutiny following allegations of fraudulent activity. The country’s financial overseer, the Financial Services Commission (FSC), has launched an inquiry into Delio’s dealings, based on concerns around fraudulent behavior, potential embezzlement, and a breach of faith.

Delio, managing roughly $1 billion worth of Bitcoin and an even more significant $8.1 billion in various other digital currencies, caused ripples of uncertainty amongst its users when it abruptly shut down deposits and withdrawals on June 14th. This abrupt move seemed to be a ripple effect from Delio’s sibling company, Haru Invest, which halted its operations due to some “consignment operator” problems the day before.

To pacify the growing unrest among his stakeholders, Jung Sang-ho, Delio’s Chief, called an emergency meeting on June 17. Sang-ho expressed Delio’s intent to restart the frozen withdrawal services but hesitated in giving a fixed date. On June 27th, Delio reinstated partial withdrawals for a few of its staking services, with Sang-ho pledging to raise the necessary funds to cover the affected users.

Delio operates as a regulated virtual asset service provider (VASP) and is thus under the watch of the financial intelligence unit. However, Haru Invest, not enjoying the same regulated status, stays free from such stringent oversight.

Interestingly, before the freeze, Delio’s executives had reportedly distanced themselves from any connection to Haru Invest. Given the recent turn of events, this denial now casts a more significant shadow on Delio’s operations and trustworthiness. The ongoing FSC investigation is likely to bring further clarity to the situation.

The combination of halted withdrawals and travel restrictions on Delio’s top brass has escalated the unease among its users and investors. The impending outcome of this investigation will unravel Delio’s liability and dictate the future of the users’ assets.

South Korea Advances in Crypto Regulation

To strengthen investor protection, South Korea has undertaken a significant step in 2023 by enacting a comprehensive law concerning digital assets. This proactive move follows a series of cryptocurrency market downturns and scandals, which triggered an urgent need for a structured regulatory framework. The new law, consolidating 19 related bills, aims to provide clear definitions for digital assets and set penalties for violations. Oversight responsibilities have been entrusted to the Financial Services Commission and the Bank of Korea. 

They will ensure cryptocurrency operators adhere to measures such as insurance coverage and proper record keeping. Although some critics fear the legislation may slow industry growth, it unmistakably signals South Korea’s recognition of the cryptocurrency sector’s potential and its commitment to regulate this burgeoning field.

Tags: Crypto ExchangeDelioSouth Korea
TweetShareShare

DON'T MISS THESE! HOT OFF THE PRESS

XRP at a Crossroads: Only Two Ways This Can Go
Crypto

XRP at a Crossroads: Only Two Ways This Can Go

June 20, 2025
Polymarket Thinks US Stablecoin Bill Is a Near Lock—But Will It Actually Pass?
Crypto

Polymarket Thinks US Stablecoin Bill Is a Near Lock—But Will It Actually Pass?

June 20, 2025
Semler Plans 105K Bitcoin by 2027 After Vet Crypto Hire
Bitcoin

Semler Plans 105K Bitcoin by 2027 After Vet Crypto Hire

June 19, 2025
SHIB Slides to Two-Month Low as Bears Eye Key Support Level
Crypto

SHIB Slides to Two-Month Low as Bears Eye Key Support Level

June 19, 2025
XRP at a Tipping Point: Breakout or Breakdown?
Crypto

XRP at a Tipping Point: Breakout or Breakdown?

June 19, 2025
Who Will Win the Layer 1 Crypto War? These Are the Chains to Watch Right Now
Cardano

Who Will Win the Layer 1 Crypto War? These Are the Chains to Watch Right Now

June 19, 2025
Load More

Related News

XRP at a Crossroads: Only Two Ways This Can Go

XRP at a Crossroads: Only Two Ways This Can Go

June 20, 2025
Polymarket Thinks US Stablecoin Bill Is a Near Lock—But Will It Actually Pass?

Polymarket Thinks US Stablecoin Bill Is a Near Lock—But Will It Actually Pass?

June 20, 2025
Semler Plans 105K Bitcoin by 2027 After Vet Crypto Hire

Semler Plans 105K Bitcoin by 2027 After Vet Crypto Hire

June 19, 2025
SHIB Slides to Two-Month Low as Bears Eye Key Support Level

SHIB Slides to Two-Month Low as Bears Eye Key Support Level

June 19, 2025
XRP at a Tipping Point: Breakout or Breakdown?

XRP at a Tipping Point: Breakout or Breakdown?

June 19, 2025
Discord Twitter Youtube TikTok Instagram

BLOCKNEWS.COM

BlockNews

BlockNews.com is your premier source for real-time cryptocurrency, blockchain, and financial market news.

Our mission is to deliver accurate, timely, and insightful information to help both seasoned investors and newcomers navigate the evolving digital economy.

With in-depth analysis, exclusive insights, and up-to-date news, BlockNews.com keeps you informed on the latest trends in crypto, DeFi, NFTs, tech, and beyond.

Stay ahead of the herd with BlockNews.com

RESOURCES

  • About
  • Contact Us
  • Terms and Conditions
  • Privacy Policy

POPULAR TOPICS

$ADA $XRP AI Avalanche Binance Bitcoin Bitcoin ETF blackrock Blockchain BTC Business Cardano Chainlink China Coinbase Coinglass crypto cryptocurrency Crypto Exchange Crypto Regulation DeFi Dogecoin Donald Trump Elon Musk ETF eth ethereum Federal Reserve FTX grayscale Memecoin metaverse Microstrategy NFT NFTs PEPE ripple sec Shiba Inu Solana Stablecoin Technology US Web3 xrp

GET QUICKER UPDATES ON X

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.

No Result
View All Result
  • Home
  • Crypto
  • Memecoins
  • Technology
  • Politics
  • Finance
  • NFT
  • DeFi
  • Opinion

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.