- The time frame for compensation and payment mechanism was not specified.
- Earlier, Delio switched to a remote workforce and briefly halted its withdrawal services.
Delio, the leading cryptocurrency lending platform in South Korea and a central figure in the Lugpool dispute, temporarily halted withdrawals two days ago. The company’s CEO has lately revealed intentions to gradually restart withdrawals.
Delio CEO Jeong Sang-ho announced the gradual resumption of withdrawal services at a conference with investors. The CEO did note, however, that things may change depending on developments involving Haru Investment and B&S. The two companies with whom Delio works closely.
No Details Mentioned
Jeong said that the bankruptcy processes being undertaken by Haru Invest created doubts about the company’s ability to deliver on the promised return on deposits. The CEO reassured shareholders that measures had been taken to recoup the losses notwithstanding the difficulties.
Investors were appeased by a declaration, but the time frame for compensation, payment mechanism, and the exact level of harm was not specified.
CEO Jeong said that despite the losses, Delio is committed to securing as much money as feasible. One option being considered is a paid-in capital increase from an outside party. While the CEO’s intent was to reassure investors, no concrete information was provided about when the debt would be paid back.
Delio got into this jam because it had given part of its customers’ money to Haru Invest, which had entrusted its own money to B&S. The effects of Haru Invest’s withdrawal freeze on B&S immediately reached Delio.
Delio thus switched to a remote workforce and briefly halted its own withdrawal services. But CEO Jeong has spoken out about his desire to return things to normal. The Delio website boasts a total asset value of $9.5 billion.
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