South Korean Crypto Platform Delio CEO Admits Deposits Were Not “Principal Protected”
South Korean crypto yield platform Delio’s CEO, Jung Sang-ho, has sparked controversy by telling investors that their deposits were not “principal protected” when they transferred their assets to the platform. The collapse of Delio last year left creditors owed an estimated 250 billion won ($181 million), leading to legal battles and accusations of fraud and embezzlement.
During a recent court hearing, Jung defended his actions by stating that the terms and conditions clearly stated that there was no guarantee of principal, and that the Korea Financial Intelligence Unit required them to notify investors of this fact. However, creditors and prosecutors argue that the platform had a duty of care to customers and should have provided a principal guarantee.
Delio’s sister firm, Haru Invest, also faced issues with withdrawals and deposits, leading to suspicions of misappropriation of customers’ crypto deposits by executives. The collapse of both companies has raised concerns about the regulation and oversight of the crypto industry in South Korea.
Despite the legal challenges and controversies, Delio CEO Jung Sang-ho has announced plans to resume withdrawals for some of the platform’s services. The next hearing for Jung is scheduled for July 23, where more details about the collapse of Delio and Haru Invest are expected to be revealed.
