cryptojournalist
Delio, a South Korean platform for virtual asset deposits, has been declared bankrupt after losing $1.75 billion of customer assets, largely due to the FTX collapse. The platform halted withdrawals last year and is now in the process of liquidation.
Liquidation Process and Creditors’ Meeting
Delio owes 245 billion won (around $1.75 billion) to its customers, and the liquidation process will begin soon. Customers have until February 21, 2025, to file claims, with a creditors’ meeting set for March 19, 2025.
Most of Delio’s lost assets were stored in FTX accounts, and after the exchange went bankrupt in November 2022, Delio couldn’t recover those funds. This left around 2,800 affected customers unable to access their money since June 2023.
Legal Issues and Company Shutdown
Delio is facing several legal challenges. In September 2023, the company countersued South Korean authorities after the Financial Intelligence Unit (FIU) recommended firing its CEO. In June 2023, Delio proposed transferring its debt to a new company and selling itself to a buyer.
Delio’s sister company, Haru Invest, also shut down and filed a lawsuit over false management reports. Haru Invest was declared bankrupt in November 2023, and its CEO was attacked during bankruptcy proceedings.
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