$1.75 Billion Gone? South Korean Crypto Platform Delio Files For Bankruptcy
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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 investments. Court’s Declaration The Seoul Rehabilitation Court stated the cryptocurrency platform Delio has gone out of business, pointing out that as of Friday, the court declared the digital asset firm bankrupt. Since mid-last year, the crypto platform no longer allows the withdrawal of virtual asset funds, leaving its customers unable to access their investments. Around 2,800 crypto investors are affected, and they cannot get their crypto funds worth $1.75 billion. [단독] ‘2500억 사기’ 델리오 파산https://t.co/WcGeIDiaQd#델리오 #delio #가상자산예치업체 #회생법원 #하루인베스트 #haruinvest #법인파산 #암호화폐 #가상화폐 #디지털자산 #가상자산 #코인 — KCG(Korea Coin Group) (@kdisla) November 22, 2024 Delio signboard. Source: Park Beom-su/Digital Asset Analysts explained that corporate bankruptcy happens when a court declares the bankruptcy of a corporation because the firm can no longer repay its debts. This court procedure allows the conversion of the company’s assets into cash and its succeeding distribution to creditors. The case of Delio is a good example of a corporate bankruptcy. A Glimmer Of Hope Reports said that after the court declares bankruptcy, “a claim is filed and an explanation of the distribution of assets is given at a creditors’ meeting.” It offers Delio’s 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’ meeting date on March 19, 2025. Total crypto market cap currently at $3.29 trillion. Chart: TradingView Why Delio Went Bankrupt A Seoul Rehabilitation Court official said that the main cause of…
Filed under: News - @ November 24, 2024 12:04 am