Court Rejects Rehabilitation Applications of 'Coin Mukttwi' Delio and Haru Invest

All rehabilitation applications for coin deposit companies that caused the virtual asset withdrawal suspension incident have been dismissed.

According to the legal community on the 4th, the Seoul Rehabilitation Court dismissed all rehabilitation applications for four corporations: Delio, Haru Invest Korea, Haru Invest, and Block Crafters.

Delio is a company engaged in virtual asset deposit and management business. On June 14 last year, it suddenly imposed a withdrawal suspension on virtual assets deposited by customers. As a result, creditors who deposited virtual assets with Delio filed for the commencement of rehabilitation proceedings on June 23 last year.

The court stated, "Delio has not been able to conduct any business activities for nine months since the withdrawal suspension, and the timing for resuming business activities is unpredictable. The uncertainty regarding the promotion of new business raises doubts about whether Delio's going concern value exceeds its liquidation value," explaining the reason for dismissal. Additionally, the court added, "During the rehabilitation process, the distributable resources for creditors are likely to decrease due to fixed costs such as salaries, rent, and server fees, making it difficult to consider that proceeding with rehabilitation aligns with the general interests of the creditors."

Haru Invest Korea had been conducting virtual asset deposits and management through the Haru Invest platform but similarly suspended withdrawals on June 13 last year and closed its head office. The Haru Invest platform has also ceased operations. The CEO and other executives were arrested and indicted in February.

Regarding Haru Invest Korea, the court also stated, "It appears unlikely that the business will continue or that a new business will be undertaken, so the going concern value cannot be considered to exceed the liquidation value. From the creditors' perspective, it is difficult to conclude that continuing the rehabilitation process and receiving the virtual assets themselves after a considerable amount of time is more beneficial than proceeding with bankruptcy and receiving the value of the virtual assets," explaining the reason for dismissal.

For Haru Invest and Block Crafters as well, the court dismissed all rehabilitation applications, stating that "the going concern value cannot be considered to exceed the liquidation value."