South Korean lending platform Delio has been officially declared bankrupt. The company owes its clients $1.75 billion, according to local media.
The project first encountered problems in June 2023, when Delio suddenly suspended the withdrawal of funds. At the time, the company's management called it a necessary measure due to difficulties with its subsidiary investment company Haru Invest. The latter also froze all asset withdrawal operations in the summer of 2023.
Representatives of the aforementioned companies subsequently faced accusations of fraud and deliberate misrepresentation of financial information. They also filed counterclaims against consignment operator B&S Holdings, which managed the companies' assets. According to lawyers for Delio and Haru Invest, their former partner provided false information about the state of accounts.
Investigators point out that B&S Holdings placed the bulk of Delio's deposits on the balance sheet of the FTX cryptocurrency exchange. As a result of the latter's collapse, these assets were lost. The bankruptcy of the South Korean platform affected about 2,800 clients. At the same time, the company ended up owing creditors $1.75 billion.
