Major crypto lending platform in trouble, new collapse looming

Many from the crypto community will, to their regret, not soon be able to erase 2022 from memory. In addition to the fact that bitcoin (BTC) and just about every altcoin had fallen hard, many companies in the industry lost their lives. Crypto lending platforms have been a big part of the laundry list of bankruptcies you’ve seen in the crypto news over the past year. This year again, some parties seem to be in trouble, with all the consequences that entails.

South Korean crypto platforms down

When crypto investors think back to the year 2022, in addition to the dramatic implosion of FTX, they will often refer to the demise of lending platforms such as Celsius, BlockFi and Voyager. These companies were previously considered to be the most reliable platforms to earn passive income with bitcoin and ethereum (ETH), among others.

The South Korean Delio is a similar platform that now seems to be going after the aforementioned. Namely, the crypto lending platform has announced that clients will “temporarily” be unable to withdraw their assets from the platform, “to securely protect client assets currently under management”.

The company made the decision in response to the recent suspension of crypto deposits and withdrawals at Haru Invest, another South Korean platform where one can earn interest from its crypto assets, which has led to “increased market volatility and more confusion among investors in the region”.

Delio indicates that the shooting will remain suspended until “the situation and its aftermath are resolved.”

Haru Invest announced the suspension of deposits and withdrawals on June 13 after it ran into trouble with one of its service providers for potentially leaking false information about the platform.

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2022 chaos: some customers finally see part of their crypto again

Recently you could read that Voyager customers are finally getting part of their crypto back. After the bankruptcy procedure turned out to be a soap opera, customers can now get 35 percent of their money back.

In addition, some BlockFi customers will also get their money back, but the users who earned interest on their assets will still not be able to access (part of) their assets.

The customers of the bankrupt Celsius have also been without access to their crypto for more than a year. The meaning of “not your keys, not your coins” seems to have become clear to many by now.

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