Crypto lender Delio freezes withdrawals citing ‘market volatility’

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South Korean digital asset savings and lending company Delio froze withdrawals today in a bid to protect customers’ remaining assets.

In a notice posted on its website (translated from Korean), the company said that it will inevitably suspend withdrawals temporarily from June 14, due to a sharp increase in market volatility and increased confusion. among investors.

Delio will do its best to protect our clients’ assets while quickly grasping the facts and consequences of this situation, the company added.

The lenders’ notice referred to the suspension of deposits and withdrawals at Haru Invest, another South Korean income platform that encountered problems with one of its service providers on Tuesday. Haru serves more than 80,000 clients in 140 countries and has approximately $1 billion in assets under management, according to an April 18 update.

Delio cited similar numbers on its website, with 41,743 BTC ($1.1 billion) and 118,083 ETH ($206 million) under management.

Both platforms offer crypto savings accounts with returns over 10% APY, with some of the Harus products exceeding returns of 50% APY. Delio also offers crypto loans, with which users must provide crypto collateral greater than the requested loan amount.

A host of similar platforms such as Celsius and BlockFi were forced to freeze withdrawals and eventually filed for bankruptcy last year as a cratering crypto market left them with little ability to repay creditors.

Crypto lending companies have generally struggled to operate in North America due to securities laws. Nexo settled with the SEC for $45 million in January and agreed to leave the United States after reaching a regulatory deadlock.

Similarly, Canadian securities regulators have banned crypto margin trading altogether and forced lending platforms like LEDN to stop providing savings products to Canadian customers.

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