Delio’s troubles began on June 14, when the company’s administration informed users that it was temporarily halting withdrawal transactions. The reason cited was difficulties at investment company Haru Invest, which stopped withdrawals and deposits a day earlier.
The FSC initiated an internal investigation into Delio as the regulator was not satisfied with the reasoning used to justify the sudden suspension of withdrawals. South Korea’s prosecutor’s office and FSC conducted a search and seized assets belonging to Delio.
“The search and seizure of assets belonging to our company’s clients, as well as Delio’s cold wallets and ledgers, by the prosecutor’s office on July 18 has made it difficult for us to provide our services. As a result, operational services and interest payments will be suspended,” the company said in a blog post.
Earlier, South Korean authorities reported on the possible introduction of new requirements for cryptocurrency companies to disclose the amount of digital assets placed on balance sheet accounts.