South Korean crypto credit firm Delio claims to have no connection with Haru Invest, a troubled sister credit company allegedly under investigation by the country's Financial Services Commission (FSC), according to a report by local news source Digital Asset. Delio came under investigation following its decision to unilaterally suspend user deposits and withdrawals on June 14. The FSC has reacted to this decision by accusing Delio of fraud, misappropriation of funds, and misuse of trust. #southkorea

Delio's Situation:

During an investor meeting on June 17, Delio's CEO Jung Sang-ho announced that withdrawal services would resume but without providing a fixed timeline. The company started opening withdrawal services for a portion of its staking services on June 27. Sang-ho stated that Delio aimed to raise as much capital as possible and provide compensation. However, it has been reported that Delio's CEO and management team are banned from leaving the country due to an investigation conducted by prosecutors. #Delio

Haru Invest Scandal:

Delio's sister company, Haru Invest, suspended withdrawal and deposit services on June 13 due to a "commitment operator" issue. This led Delio to take the same step the following day, presumably due to counterparty risk. It was reported that most of Haru Invest's staff were dismissed after this announcement. The company stated that it initiated legal proceedings against its service partner. #HaruInvest

Delio's Current Situation:

Delio is one of the leading crypto credit providers in South Korea, with an estimated $1 billion worth of Bitcoin (BTC), $200 million worth of Ether (ETH), and $8.1 billion worth of various altcoins. The company is going through a challenging period due to the FSC investigation, but it claims to have no involvement in the Haru Invest scandal. Delio aims to regain user trust and provide compensation. #ETH

In Summary:

South Korean crypto credit company Delio claims to be unrelated to the Haru Invest scandal and asserts that it is not under investigation. The company faced accusations of fraud, misappropriation of funds, and misuse of trust by the FSC due to the decision to suspend user deposits and withdrawals. Delio has started gradually reopening withdrawal services and has committed to providing compensation as it aims to regain user trust. Highlighting its lack of involvement in the Haru Invest scandal, Delio is currently going through a challenging period.