{"id":3202,"date":"2024-11-24T00:20:44","date_gmt":"2024-11-24T00:20:44","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=3202"},"modified":"2024-11-24T00:20:44","modified_gmt":"2024-11-24T00:20:44","slug":"1-75-billion-gone-south-korean-crypto-platform-delio-files-for-bankruptcy","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=3202","title":{"rendered":"$1.75 Billion Gone? South Korean Crypto Platform Delio Files For Bankruptcy"},"content":{"rendered":"
\n

A cryptocurrency platform based in South Korea has gone into bankruptcy as declared by a local court after its customers can no longer withdraw their virtual funds worth $1.75 billion.<\/p>\n

The unfortunate circumstances faced by Delio serve as a reminder that digital assets might offer tremendous growth, but they are also inherently volatile and high-risk investments.<\/p>\n

Court\u2019s Declaration<\/strong><\/h2>\n

The Seoul Rehabilitation Court stated the cryptocurrency platform Delio has gone out of business<\/a>, pointing out that as of Friday, the court declared the digital asset firm bankrupt.<\/p>\n

Since mid-last year, the crypto platform no longer allows the withdrawal of virtual asset funds, leaving its customers unable to access their investments.<\/p>\n

Around 2,800 crypto investors are affected, and they cannot get their crypto funds worth $1.75 billion.<\/p>\n

\n

[\ub2e8\ub3c5] \u20182500\uc5b5 \uc0ac\uae30\u2019 \ub378\ub9ac\uc624 \ud30c\uc0b0https:\/\/t.co\/WcGeIDiaQd<\/a>#\ub378\ub9ac\uc624<\/a> #delio<\/a> #\uac00\uc0c1\uc790\uc0b0\uc608\uce58\uc5c5\uccb4<\/a> #\ud68c\uc0dd\ubc95\uc6d0<\/a> #\ud558\ub8e8\uc778\ubca0\uc2a4\ud2b8<\/a> #haruinvest<\/a> #\ubc95\uc778\ud30c\uc0b0<\/a> #\uc554\ud638\ud654\ud3d0<\/a> #\uac00\uc0c1\ud654\ud3d0<\/a> #\ub514\uc9c0\ud138\uc790\uc0b0<\/a> #\uac00\uc0c1\uc790\uc0b0<\/a> #\ucf54\uc778<\/a><\/p>\n

\u2014 KCG(Korea Coin Group) (@kdisla) November 22, 2024<\/a><\/p>\n<\/blockquote>\n

\"\"<\/p>\n

Analysts explained that corporate bankruptcy happens when a court declares the bankruptcy of a corporation because the firm can no longer repay its debts.<\/p>\n

This court procedure allows the conversion of the company\u2019s assets into cash and its succeeding distribution to creditors. The case of Delio is a good example of a corporate bankruptcy.<\/p>\n

A Glimmer Of Hope<\/strong><\/h2>\n

Reports said that after the court declares bankruptcy, \u201ca claim is filed and an explanation of the distribution of assets is given at a creditors\u2019 meeting.\u201d<\/p>\n

It offers Delio\u2019s customers some gleam of hope as the South Korean court ordered its creditors to submit their claims by February 21, 2025. The court also set a creditors\u2019 meeting date on March 19, 2025.<\/p>\n


\nWhy Delio Went Bankrupt<\/strong><\/p>\n

A Seoul Rehabilitation Court official said that the main cause of Delio\u2019s bankruptcy is its \u201cinability to pay<\/a> was acknowledged in light of the suspension of withdrawals, circumstances of the suspension of operations, and the extent of the damage.\u201d<\/p>\n

The official added that the cryptocurrency<\/a> platform operated as a deposit and management firm wherein it generated profits and paid interest by \u201coperating virtual assets such as Bitcoin deposited by customers.\u201d<\/p>\n

\u201cThe debtor lent and entrusted the management of customer deposited virtual assets to the operator, but a significant portion of them were deposited in the FTX account and were being managed,\u201d he continued.<\/p>\n

However, he said that the \u201centrusted virtual assets could not be recovered\u201d after the FTX went bankrupt in November 2022 which led to Delio suspending the withdrawals in the platform.<\/p>\n

Delio Exec Counters Authorities<\/strong><\/p>\n

In September 2023, the crypto firm accused the South Korean authorities of misinterpreting the law after the state agency Financial Intelligence Unit (FIU) proposed the sacking of Delio\u2019s CEO, Jeong Sang-ho.<\/p>\n

The government also suspended the license to operate the crypto platform and ordered the firm to pay a fine worth $1.34 million.<\/p>\n

The crypto platform\u2019s CEO is currently facing charges of \u201cfraud, embezzlement, and breach of trust.\u201d However, the Delio executive defended himself saying that investors\u2019 deposits in the platform were not \u201cprincipal protected\u201d.<\/p>\n

Delio was established in 2018 and received the virtual asset service provider (VASP) status in 2022 from the FIU, making it the first South Korean firm to earn that recognition.<\/p>\n

Featured image from The Independent, chart from TradingView<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

A cryptocurrency platform based in South Korea has gone into bankruptcy as declared by a local court after its customers can no longer withdraw their virtual funds worth $1.75 billion. The unfortunate circumstances faced by Delio serve as a reminder that digital assets might offer tremendous growth, but they are also inherently volatile and high-risk […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-3202","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/3202","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3202"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/3202\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3202"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3202"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3202"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}