South Korea's Delio declares bankruptcy after losing $1.75 billion in assets!

South Korea's Deli also lost $1.75 billion in assets. And losing this amount of money has recently declared it bankrupt. Delio is a South Korean virtual asset deposit platform. Yesterday, the financial institution was declared bankrupt by a court in Seoul. Delio, which has 245 billion won of customers which amounts to about $1.75 billion in US dollars. And this amount is owed by customers. It stopped lifting last year. Recently Delio will start liquidation process. But for that a specific time process has been fixed. Hence their customers can claim through it till the third week of February 2025. Even the first creditors' meeting will be held around mid-March 2025 for the creditors they still have.

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The debtor leased and assigned the management of customer-deposit virtual assets to the management company. However, in this case, a large portion of the customer-deposited virtual asset was deposited and managed in the FTX account, even though the management of the virtual asset was leased and delegated to the management company. Which resulted in the bankruptcy of FTX two years ago when the platform was unable to fund them. Since FTX went bankrupt last two years and they could not recover their assets and hence they were unable to return the assets to their customers later on. As a result, many customers did not get their assets back and around 2,800 customers were affected due to this bankruptcy. Even last year when Daelio sued South Korean authorities for misinterpreting the law by a government law firm. And in that context, a fine was imposed against the platform at that time and amounted to approximately 1.83 billion Korean won.

Delio was founded in 2018. Then two years ago it became the first Korean crypto firm to receive Virtual Asset Service Provider (VASP) status from the FIU. But in the middle of this year, Delio set up a new company. As a result, he offered to transfer his debt. And sell yourself to a buyer looking to get VASP status as a process to transfer the loan. However, the court ruled that the platform was declared bankrupt and argued that the customer's deposits with the platform were not principally protected.

Delio has shut down its operations not at the same time and on the same day Delio's sister company, Haru Invest, shut down operations on the same day as Delio. It filed a case against B&S Holdings, a consignment operator, in the middle of last year for providing false management reports. Even as a result, the Haru Invest platform was declared bankrupt around November last year. The CEO of Haru Invest was arrested late last year after the CEO stabbed an angry customer in the neck while the firm was in bankruptcy proceedings. That is why he was arrested.