Delio, a South Korea-based cryptocurrency lending platform, announced that it has suspended the withdrawal of funds as of 6.30 p.m. on June 14. The platform made the announcement on the same day that it put all withdrawals on hold, citing the current state of the crypto market.
As reported by the South Korean news website Decenter.kr, the suspension of withdrawals by Dalio came just a day after another crypto platform, Haru, placed restrictions on withdrawals from its own platform.
S rapid surge in market volatility
According to Dalio officials, the decision to put a hold on all withdrawals became necessary following what they described as the current increased volatility of the market. They added that they experienced increased volatility following the cessation of withdrawals by Haru Invest, a cryptocurrency management platform based in Seoul, South Korea.
The statement from Delio said,
“As a result of the recent suspension of digital asset deposits and withdrawals at Haru Invest, there has been a rapid surge in market volatility and a state of perplexity among investors. To ensure the preservation of our valued customers’ assets, Delio Global has made the difficult decision to temporarily suspend withdrawals, effective from June 14, 2023, at 18:30 KST, until the resolution of the current situation and its subsequent consequences.”
Upbit in support of the move
Delio is reported by the financial authorities in South Korea as a virtual asset operator, the only company that is recognized in this category in the country.
The decision by Delio to suspend withdrawals was backed by UpBit, a crypto exchange based in South Korea. The update from UpBit said that the measure was to ensure that customers’ funds were protected. Upbit reiterated that all funds belonging to Delio in its custody will be restricted for withdrawals.
The Haru controversy
Haru Invest suddenly suspended withdrawals on its platform, raising concerns that the company may have pulled an exit scam. In response to the speculations, the platform released a statement on June 14, saying,
Please note that there have been several media articles recently that are factually incorrect. Our office is currently continuing our work, and the so-called “rug pull controversy’ mentioned in some articles is completely untrue.
In all these cases, what Haru investors can hold on to at the moment is a June 13 statement, which the company passes off as the reason for the suspension of withdrawals of funds said,
Haru Invest said they’re still in business
“Recently, we have discovered through our internal inspection process that certain information provided by a consignment operator was suspected to be false. After careful investigation, we concluded that an immediate suspension of transactions was necessary to protect our investors. We are currently engaging in a fact-finding process against the operator in question and plan to take the necessary measures.
We regret that several media articles on this topic contained information that is factually inaccurate. In particular, we like to ensure our investors that claims about “rug pull” mentioned in some reports are not true at all. We are now fully working on the matter and committed to protecting our investors. We will provide you with further updates as soon as they’re available.”
Meanwhile, Haru Invest customers are waiting and hoping that the company that promised them a 12% APR will restart operations. For Dalio customers, they can only hope that their destiny isn’t tied to Haru’s.