Crisis Unfolds as Delio, a South Korean Crypto Firm, Collapses
by aria-crypto.com
November 23, 2024 at 23:37
Crisis Unfolds as Delio, a South Korean Crypto Firm, Collapses
A South Korean cryptocurrency platform, Delio, has declared bankruptcy following a court order, affecting approximately 2,800 investors who cannot withdraw their funds valued at $1.75 billion. The Seoul Rehabilitation Court marked the firm as out of business due to prolonged withdrawal suspensions and extensive operational halts. Delio's financial crisis stemmed from mismanaged funds, including significant investments in the now-bankrupt FTX, leading to unrecoverable losses. Despite facing charges of fraud and mismanagement, Delio's CEO defends the firm's practices, highlighting the inherent risks in non-principal protected crypto investments. With the bankruptcy declared, a creditor's meeting has been scheduled for March 19, 2025, offering a slight hope for some recovery for the beleaguered investors. This incident underscores the high-risk nature of the crypto industry and the importance of rigorous financial oversight. Delio had previously gained recognition as the first virtual asset service provider in South Korea, a status granted in 2022 by the Financial Intelligence Unit.
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