According to ChainCatcher, South Korean virtual asset management and lending platform Delio issued a notice to creditors that it plans to set up a new company to take over all its debts. Delio intends to sell its existing entities, including a virtual asset service provider (VASP), and use the proceeds from the sale to resolve its financial obligations.
Delio is currently facing trial for allegedly stealing around 250 billion won (about $180 million) in cryptocurrencies and abruptly halting cryptocurrency deposits and withdrawals without prior notice. Industry experts have expressed doubts about the viability of Delio’s strategy, suggesting the plan may be an attempt to obtain a lighter sentence in the ongoing trial.