The crypto case of Delio-Haru Invest in South Korea continues with an arrest warrant



In a crucial development in the crypto landscape of South Korea, prosecutors have issued an arrest warrant for Bang. 

A central figure in the investigation into the suspensions of withdrawals that have affected local crypto lender Delio and investment company Haru Invest.

South Korea issues arrest warrant in crypto case Delio-Haru Invest

The South Korean authorities have taken an important step in the ongoing investigation into the withdrawal suspensions affecting local cryptocurrency lender Delio and investment company Haru Invest. 

According to the South Korean media Digital Asset, an arrest warrant has been issued for a key figure, known as Bang, whose majority ownership of B&S Holdings is at the center of the service suspensions.

The cryptocurrency landscape was shaken on June 14, 2023, when Delio, a platform that boasts a transaction volume of over one billion dollars in cryptocurrency lending and borrowing services, suddenly halted user withdrawals. 

Delio attributed this unexpected move to the sudden cessation of deposits and withdrawals by Haru Invest, a cryptocurrency investment manager in partnership with Delio.

Haru Invest promptly responded by filing a criminal complaint against B&S Holdings, a consignment operator accused of deceptive practices through the provision of false management reports. 

According to Digital Asset, Haru has stated that B&S Holdings has suffered a staggering loss of 350 billion Korean won (262 million dollars) in the collapse of the FTX exchange.

This colossal loss, attributed to the crashed stock market, would be the cause of the sequential suspension of withdrawals suffered by Delio users.

The key person in the Delio-Haru Invest case

The key person in question, Bang, who holds a majority stake in B&S Holdings, must now face serious charges. 

The South Korean police have requested an arrest warrant against Bang, on charges of fraud and breach of trust, as reported by Digital Asset. Prosecutors in Seoul have then requested the review of this warrant through a local court.

In response to the disorders, Delio and Haru’s customers have expressed their complaints, prompting the prosecutors to act quickly.

The key members of Delio, Haru and B&S are unable to leave the country during the investigations.

This move indicates the seriousness of the situation and the commitment of the authorities to ensure a thorough examination of the alleged fraudulent activities.

Although the Southern District Prosecutor’s Office in Seoul did not immediately respond to requests for confirmation and further comments, the arrest warrant against Bang highlights the seriousness of the charges. 

The ongoing events involving Delio, Haru Invest, and B&S Holdings highlight the vulnerability of the cryptocurrency sector to fraudulent practices, making regulatory oversight and preventive measures necessary.

As judicial proceedings progress, stakeholders in the cryptographic space will closely observe their outcome, hoping for a resolution that not only addresses the immediate concerns of the involved users but also contributes to the creation of a safer and more transparent environment within the cryptocurrency and blockchain ecosystem.

Conclusions on the matter

In conclusion, the arrest warrant issued in the Delio-Haru Invest case marks a fundamental step in unraveling the intricate web of financial irregularities that impact the cryptocurrency sector in South Korea. 

The suspension of user withdrawals by Delio, resulting from the collapse of the FTX exchange and the alleged deceptive practices of B&S Holdings, highlights the vulnerability of the cryptocurrency sector to fraudulent activities. 

While legal proceedings are ongoing, the cryptocurrency community awaits a resolution that not only addresses the immediate concerns of affected users, but also serves as a precedent for increased regulatory control. 

This incident highlights the urgent need for strong protections and transparency within the cryptocurrency and blockchain ecosystem. 

The proactive measures taken by South Korean authorities, which have restricted the movements of key individuals involved, further indicate the seriousness with which they are addressing these allegations. 

In the final analysis, the outcome of this investigation will play a fundamental role in defining the future landscape of cryptocurrency regulation and promoting a safer environment for industry operators and investors.