South Korean cryptocurrency firm Delio has announced plans to establish a new company to transfer its debt amidst an embezzlement scandal involving $180 million worth of virtual assets. Delio initially attracted investors by promising a 10% annual return on deposits of cryptocurrencies such as Bitcoin and Ethereum. However, in June 2023, the company abruptly halted its services, leading to accusations of fraud and embezzlement against CEO Jung Sang-ho. Jung was indicted for fraud and violating financial regulations, and while he avoided arrest, the ongoing trial has impacted the company’s operations and reputation. In an attempt to repay creditors, Delio has revealed a plan to transfer its debt to a newly established corporation. The company intends to sell its existing operations to a company in need of a virtual asset deposit services provider and use the proceeds to repay the new corporation that has assumed the debt. The plan is expected to be implemented in July 2024.
