FIU Suspends Delio's Operations for 3 Months and Imposes a 1.9 Billion KRW Fine for 'Customer Withdrawal Suspension'

The financial authorities have imposed a business suspension and other sanctions on the virtual asset management company Delio, which had halted customer withdrawals.

On the 1st, the Financial Intelligence Unit (FIU) of the Financial Services Commission imposed a three-month business suspension and a fine of 1.896 billion KRW on Delio. Additionally, a recommendation for dismissal was issued against one executive.

The FIU determined that Delio violated the obligations under the Act on Reporting and Using Specified Financial Transaction Information, including the prohibition on transactions with unregistered virtual asset service providers and restrictions on transactions involving virtual assets issued by related parties. Furthermore, it was found that Delio failed to conduct anti-money laundering risk assessments before offering new products and services and violated customer verification obligations.

Delio, registered as a Virtual Asset Service Provider (VASP) with the financial authorities, operated a deposit service offering up to 10.7% annual interest. However, in June of this year, it abruptly suspended customer withdrawals, prompting the FIU to initiate an inspection and the prosecution to launch an investigation.

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