'250 Billion Coin Scam' Delio Declares Bankruptcy... Court Rules "Insolvent"

Delio, a deposit company that caused a virtual asset (coin) withdrawal suspension incident worth about 250 billion KRW, has been declared bankrupt by the court.

Ryu Kwang-jin, CEO of TMON, is attending a hearing held at the Seoul Rehabilitation Court in Seocho-gu, Seoul on the 2nd. The court plans to review the reasons for the rehabilitation applications of TMON and WEMAKEPRICE, their debt status, and funding plans. Photo by Jo Yong-jun jun21@

On the 22nd, the 11th Rehabilitation Division of the Seoul Bankruptcy Court (Chief Judge Oh Byung-hee) declared Delio bankrupt, stating, "Considering the withdrawal suspension measures, the circumstances of the operation suspension, and the damage situation, the cause of insolvency leading to bankruptcy is recognized."

Accordingly, Delio will enter the liquidation process, including asset sales and creditor distributions. If claims are reported by February 21 next year, a creditors' meeting and claim investigation will be held on March 19 next year. At the creditors' meeting, resolutions regarding the continuation of business may be made, and the claim investigation will proceed to identify creditors and claim amounts.

Delio, established in 2018 for the purpose of developing blockchain systems, has been engaged in virtual asset deposit and management business. The virtual assets deposited by customers were lent and entrusted for management to operating companies, a significant portion of which was deposited into accounts at the U.S. FTX exchange and managed there. However, around November 2022, when the FTX exchange went bankrupt and the entrusted assets could not be recovered, Delio suddenly suspended withdrawals on June 14 last year.

Regarding this matter, Delio's CEO, Mr. Jeong, is currently on trial at the Seoul Southern District Court for special fraud and other charges.