Two crypto platforms halt withdrawals in an echo of the sector’s 2022 woes

Two South Korea-linked crypto platforms halted withdrawals in the space of 24 hours, a reminder of the ongoing risks in the digital-asset sector following a spate of blowups sparked by a market rout last year. One of them, Delio, said the temporary suspension took effect on Wednesday and blamed “market volatility and increased confusion” triggered by the suspension of withdrawals and deposits at the other outfit, Haru Invest.

Haru Invest had cited a problem with a service provider for its move and subsequently tweeted that it’s taking legal action against a company for allegedly providing management reports containing false information. There was a “sudden surge of withdrawals on our end in the aftermath of Haru Invest’s withdrawal suspension,” said Delio’s Chief Executive Officer James Jung. “We have thus temporarily suspended withdrawals to calm the situation.”