South Korean crypto deposit platform Delio has been declared bankrupt by the Seoul Rehabilitation Court on November 22, marking the collapse of a company once seen as a leader in the nation’s virtual asset sector. The platform, burdened with debts of 245 billion won ($1.75 billion) owed to roughly 2,800 customers, will now enter liquidation.
Delio’s financial downfall began in June 2023 when it abruptly suspended customer withdrawals. As per medai reports, the company’s inability to recover assets tied to the bankruptcy of crypto exchange FTX in November 2022 exacerbated its troubles.
“The debtor leased and entrusted the management of customer-deposit virtual assets to the management company, but a large part of it was deposited and managed in the FTX account.”
As per court documents, a large portion of Delio’s customer assets had been deposited with FTX. When FTX collapsed, these assets became unrecoverable, leaving Delio unable to fulfil its financial obligations.
The court set February 21, 2025, as the deadline for creditors to file claims, with a creditors’ meeting scheduled for March 19, 2025. A court official stated that the bankruptcy was declared based on Delio’s inability to repay debts, the suspension of its operations, and the extensive losses incurred by its customers.
The bankruptcy comes amid ongoing legal and regulatory scrutiny of Delio. In September 2023, the Financial Intelligence Unit (FIU) fined Delio 1.83 billion won ($1.34 million) and recommended the dismissal of its CEO, Jeong Sang-ho, citing violations of regulatory standards.
Jeong has also been indicted on charges of fraud and embezzlement, with prosecutors accusing him of defrauding investors of approximately 250 billion won. Jeong has defended himself, arguing in court that the platform did not guarantee customers’ deposits as principal-protected investments.
Founded in 2018, Delio was the first South Korean firm to secure Virtual Asset Service Provider (VASP) status in 2022. Jung Sang-ho, CEO of Delio is currently charged with fraud, embezzlement, and breach of trust over the collapse of the Delio platform.
The collapse of Delio follows the bankruptcy of its sister company, Haru Invest, which was declared insolvent on November 20. Haru, like Delio, halted withdrawals in June 2023, citing operational difficulties
All Rights Reserved. Copyright , Central Coast Communications, Inc.