A South Korean cryptocurrency platform has been declared bankrupt by a local court after customers were unable to withdraw $1.75 billion in virtual funds. Delio's situation highlights the risks associated with digital assets, despite their potential for growth. The Seoul Rehabilitation Court confirmed Delio's bankruptcy, citing the firm's inability to allow withdrawals since last year. Approximately 2,800 investors are affected by this development. Corporate bankruptcy involves converting assets into cash for distribution to creditors, as seen in Delio's case. The court has set deadlines for creditors to submit claims and scheduled a meeting for March 19, 2025. Delio's bankruptcy was attributed to the loss of virtual assets deposited with FTX, leading to withdrawal suspensions. The platform's CEO is facing legal issues, including fraud allegations. Delio, established in 2018, was the first South Korean firm to receive VASP status in 2022. Read more AI-generated news on: https://app.chaingpt.org/news