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Two South Korean Lending Platforms Suspend Withdrawals And Face Lawsuits In Fraud Allegations


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Alex Lari

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Delio Invest, a prominent digital asset lending platform based in South Korea, has implemented a temporary halt on withdrawals within their platform, closely following a similar action from Haru Invest, another lending platform in the country. A class action lawsuit is filed in Seoul against the two companies for fraud allegations.

The digital asset lender Delio has declared that the decision to suspend withdrawals was necessary and could not be avoided.

Connections Between Delio And Haru Invest

Delio recently issued a customer notice, informing them of the temporary suspension of withdrawals effective June 14. The company attributed this necessary step to the heightened market volatility and investor uncertainty triggered by Haru Invest’s decision to halt both deposits and withdrawals.

Delio stated this decisive action was taken in an effort to protect customer assets entrusted to its care.

Although the company emphasized the unavoidable nature of this measure, it clarified that withdrawals would remain suspended “until the resolution of the aforementioned situation and its subsequent implications.” An excerpt from the announcement reads:

Due to the recent disruption in digital asset deposits and withdrawals by Haru Invest., Delio has temporarily suspended withdrawals to protect customers’ assets until the situation is resolved. We apologize for any inconvenience caused and will provide updates on the matter and measures taken to protect customer assets.

Lawsuits Filed

On Friday, the law firm LKB & Partners filed the complaint with the Seoul Southern District Prosecutors’ Office on behalf of approximately one hundred clients who assert that they incurred losses when the platforms suspended withdrawals the previous week. Among those accused in the complaint are Haru Invest’s CEO Lee Hyungsoo and Delio’s CEO Jung Sang-ho.

The victims collectively seek damages amounting to approximately 50 billion won ($39 million).

Haru Invest Starts A Domino Effect ?

On Tuesday, Haru Invest halted deposits and withdrawals, accusing its consignment operator, B&S Holdings of providing false information. Additionally, Haru Invest has filed a criminal lawsuit against B&S Holdings.

Haru Invest and Delio both provide services that enable users to earn returns by depositing their digital assets on their platforms. Haru Invest offered a maximum yield of 12%, while Delio offered up to 10%.

Possible Connections of The South Korean Platforms To FTX

Meanwhile, Ki Young Ju, the CEO of CryptoQuant, has expressed the possibility of Haru Invest having ties to the troubled exchange FTX. On-chain data reveals that Haru Invest’s two transactions to FTX represent the largest transfers to its bitcoin address.


OXT Research has reported that Haru Invest made use of FTX’s services. If that’s true, it suggests that the company has kept its investors uninformed for nearly a year.

Read more on the subject


Why did Delio Invest suspend withdrawals?

Delio Invest cited heightened market volatility and investor uncertainty triggered by Haru Invest’s decision to halt both deposits and withdrawals.

What is the lawsuit about?

A class action lawsuit has been filed against Delio Invest and Haru Invest, alleging fraud and seeking damages of approximately 50 billion won ($39 million).

Is there a connection between Haru Invest and FTX exchange?

There are suggestions of a possible connection between Haru Invest and FTX exchange, with evidence showing large transfers from Haru Invest to FTX’s bitcoin address.

What services did Haru Invest and Delio Invest offer?

Both platforms provided digital asset lending services, allowing users to earn returns by depositing their digital assets. Haru Invest offered a maximum yield of 12 percent, while Delio Invest offered up to 10 percent.

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