South Korean Crypto Platform Delio Declared Bankrupt Amid $1.75B Debt

• Delio stopped allowing withdrawals last year because they owed their clients 245B won ($1.75B).
• The first creditors’ meeting is scheduled on March 19, 2025.

According to several local news reports, a court in Seoul, South Korea, declared virtual asset deposit platform Delio bankrupt on November 22. Delio stopped allowing withdrawals last year because they owed their clients 245 billion won ($1.75 billion).

The process of liquidation will be initiated by Delio. The first creditors’ meeting is scheduled on March 19, 2025, and customers have until February 21, 2025, to submit claims.

Because of this, the platform was unable to recoup its assets after FTX’s bankruptcy in November 2022 and could not restore consumer funds following June 13, 2023. The bankruptcy has an impact on around 2,800 clients.

Trial Underway for Multiple Charges

Following the recommendation of CEO Jeong Sang-ho’s dismissal by the government’s Financial Intelligence Unit (FIU) on September 1, 2023, Delio filed a countersuit against the South Korean authorities in September 2023, claiming that they had misunderstood the law. A temporary suspension of Delio’s business license and a fine of 1.83 billion Korean won ($1.34 million) were both imposed simultaneously.

Delio became the first Korean cryptocurrency company to get VASP certification in 2022; it was started in 2018. Delio suggested forming a new firm in June, shifting its debt to it, and then selling itself to someone seeking VASP status.

On trial on charges of fraud, embezzlement, and breach of trust is Jeong Sang-ho. Customers’ deposits were not “principal protected” on the platform, according to his June court arguments.

On the same day that Delio went out of business, its sister firm, Haru Invest, also went out of business. It sued the consignment operator B&S Holdings on June 14, 2023, for allegedly giving it fabricated management reports. On November 20th, Haru Invest was declared insolvent.

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