• Delio’s move comes as the SEC tightens its crackdown in the United States.
  • The move follows the recent suspension of digital asset deposits and withdrawals at Haru Invest.
  • In addition, market volatility has skyrocketed, increasing confusion among investors.

South Korean-owned cryptocurrency lending and savings company Derio has suspended withdrawals of funds amid rising market volatility.

Founded in 2018, Delio offers clients up to 10.7% Annual Percentage Rate (APR) on their Bitcoin (BTC), Ethereum (ETH) and Tether (USDT) holdings.

In a statement, the company said: statement The company said it has decided to suspend deposits and withdrawals to protect customers who are currently embarrassed by the plummeting prices of Bitcoin and other cryptocurrencies. A translated version of the statement read:

“In response to the recent suspension of deposits and withdrawals of digital assets at Haru Invest. In order to safely protect the assets of our customers, Derio will inevitably suspend withdrawals from 18:30 on June 14, 2023 until the above situation and its aftermath are resolved.”

Decline in the cryptocurrency market

Since reaching an all-time high (ATH) of $69,000 in 2021, the price of Bitcoin has fallen significantly. Prices of major cryptocurrencies fell by more than 5% this week, and most altcoins also fell significantly.

Without strong capital management and reserves, a prolonged bear market has forced centralized cryptocurrency businesses to suspend withdrawals and go out of business. Of the large number of cryptocurrency lending platforms, only a few have been able to continue normal business operations.

The bear market has seen Celius, Voyager, BlockFi, Vauld and many other industry heavyweights go bankrupt.

One of the few digital asset lenders that have not suspended their withdrawal services during this difficult time is Nexo, which reached a $45 million settlement with the US SEC last January.

By Jules

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