Delio’s move comes amid a heightened crackdown in the US by the SEC.
The move follows the recent suspension of deposit and withdrawal of digital assets at Haru Invest.
There have also been a sharp increase in market volatility and increased confusion among investors.
Due to increased market volatility, Delio, a Korea-owned cryptocurrency lending and savings company, has temporarily suspended fund withdrawals.
Founded in 2018, Delio offers its customers an annual percentage rate (APR) of up to 10.7% on their Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) holdings.
The company said in a statement that it made the decision to halt deposits and withdrawals to protect its customers, who are currently perplexed as a result of the sharp decline in the price of Bitcoin and other cryptocurrencies. The translated version of the statement read:
“In the aftermath of the recent suspension of deposit and withdrawal of digital assets at Haru Invest., situations such as a sharp increase in market volatility and increased confusion among investors are causing. In this situation, in order to safely protect the assets of customers currently in custody, Delio will inevitably suspend withdrawals temporarily as of June 14, 2023, 18:30, until the above situation and its aftermath are resolved.”
Crypto market decline
Since reaching an all-time high (ATH) of $69,000 in 2021, the price of Bitcoin has significantly decreased. The price of the leading cryptocurrency has decreased by more than 5% this week, and most altcoin prices have also undergone significant declines.
Without strong capital controls and reserves, the protracted bear market has made it inevitable for centralized cryptocurrency businesses to cease fund withdrawals or go out of business. Only a few of the numerous crypto lending platforms have managed to continue their regular business operations.
The bear market has seen industry heavyweights like Celsius, Voyager, BlockFi, Vauld, and a host of others go under.
One of the very few digital asset lenders that have not suspended fund withdrawal services during these difficult times is Nexo, which reached a $45 million settlement with the US SEC last January.
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