South Korean crypto-finance firm Delio, which allegedly stole $180 million from users, plans to transfer debt by setting up a new company

On June 20th, South Korean virtual asset management and lending platform Delio announced plans to establish a new company to take over all of its debts and liabilities. Delio intends to sell its existing entities, including a virtual asset service provider (VASP), and use the proceeds to settle its financial obligations.

Currently, Delio is facing trial for allegedly stealing about 250 billion Korean won ($180 million) worth of cryptocurrency and abruptly halting cryptocurrency withdrawals without prior notice. Industry experts have expressed doubts about the feasibility of Delio's strategy, suggesting that the plan may be an attempt to obtain a lighter sentence in the ongoing trial.