South Korea issues arrest warrant in Delio-Haru Invest withdrawal-suspension case

Quick Take

  • B&S Holdings, which allegedly caused the sequential suspension of withdrawals, reportedly lost hundreds of millions in the FTX collapse.

South Korean prosecutors have issued an arrest warrant on Bang, a key person of interest in the investigation on withdrawal suspensions of local cryptocurrency lender Delio and investment firm Haru Invest, South Korean media outlet Digital Asset reported Wednesday.

Bang reportedly owns a majority of shares at B&S Holdings, a firm that Haru Invest alleged as the root cause of the serial suspension of services. The full name of Bang remains undisclosed due to local media-privacy rules.

On June 14, 2023, Delio, which claims to have processed over a billion dollars worth of crypto in its lending and borrowing services, halted user withdrawals. Delio attributed the suspension to the abrupt deposit and withdrawal cessation at Haru Invest, a crypto investment manager that Delio worked with.   

On the same day, Haru filed a criminal complaint against B&S Holdings, a consignment operator, alleging that it deceived the company by providing false management reports. Haru alleged that B&S lost 350 billion Korean won ($262 million) worth of funds in the collapsed FTX exchange, according to a previous report from Digital Asset.


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The South Korean police applied for an arrest warrant on Bang last week for charges of fraud and breach of trust, according to Digital Asset. Seoul prosecutors have since reportedly requested a local court to review the warrant. 

Meanwhile, customers of Delio and Haru have filed complaints to its executives, after which the prosecutors have blocked key members of Delio, Haru and B&S from leaving the country. 

The Seoul Southern District Prosecutors’ Office did not immediately respond to The Block’s request to confirm the reports and provide further comments.

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About Author

Danny Park is an East Asia reporter at The Block writing on topics including Web3 developments and crypto regulations in the region. He was formerly a reporter at Forkast.News, where he actively covered the downfall of Terra-Luna and FTX. Based in Seoul, Danny has previously produced written and video content for media companies in Korea, Hong Kong and China. He holds a Bachelor of Journalism and Business Marketing from the University of Hong Kong.


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