South Korean crypto bank Delio suspends the withdrawal of funds

Temporary measures come amid heightened market volatility after Haru Invest suspended deposits and withdrawals

14.06.2023 - 14:00

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2 min

What’s new? On June 14, South Korean crypto bank Delio suspended withdrawals, the local publication Decenter reports. The company took such measures amid heightened market volatility after the digital asset management platform Haru Invest froze deposits and withdrawals. Representatives of Delio said that the suspension of withdrawals is temporary “until the implications are eliminated.” In response, local exchange Upbit said it was limiting cryptocurrency withdrawals for the crypto bank “as part of investor protection measures.”

Decenter’s material

Situation with Haru Invest. On June 13, the platform suspended deposits and withdrawals, citing problems with an unnamed partner. On the same day, the Haru Invest team stated that the company’s “‘Rug pull controversy’ mentioned in some articles is completely untrue.”

Rug Pull is a type of scam in which project developers, after having raised enough money through the PR of a roadmap, which implies sustainable development, delete social media, take investments, and leave the project without support, leaving investors with devalued tokens.

During an internal inspection process, Haru Invest discovered that certain information provided by the platform operator was false. After a thorough investigation, the company decided to immediately suspend operations to protect investors.

On June 14, the Haru Invest team claimed that B&S Holdings (formerly known as Aventus), one of the company’s operators, fraudulently provided management reports containing false information, thereby deceiving the company and its users. According to the blog, Haru Invest filed a criminal complaint against B&S Holdings and plans to file a civil lawsuit.

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