South Korean prosecutors have asked a Seoul court to sentence Delio CEO Jeong Sang-ho to 20 years in prison, describing the alleged fraud as “massive” and saying it left thousands of investors without access to their funds. In closing arguments at the Seoul Southern District Court, prosecutors sought punishment under the Act on Aggravated Punishment of Specific Economic Crimes, accusing Jeong of deliberate deception and false promotion that affected nearly 2,800 victims, according to Yonhap.
“The defendant’s active deceptive acts and false promotion have resulted in numerous victims, and the scale of the damage is massive,” prosecutors said, adding that Jeong has aggravated victims’ suffering by evading responsibility and remaining uncooperative.
Delio ran a crypto deposit service promising high interest on coins deposited for fixed periods. On June 14, 2023, the platform abruptly suspended withdrawals and froze customer assets valued at about 250 billion won (roughly $169 million). A Seoul court declared the company bankrupt in November 2024.
Jeong’s defense acknowledged investor harm and said the defendant feels a deep sense of responsibility, adding that Jeong would seek to compensate victims if acquitted. Jeong was indicted in April 2025 on charges of embezzling crypto assets totaling about $169 million over roughly two years, from August 2021 to June 2023. The first-instance verdict is scheduled for July 16.
The Delio case comes amid a wider regulatory crackdown on crypto platforms in South Korea. Regulators recently penalized Coinone, the country’s third-largest exchange, with fines and a partial business suspension for Anti-Money Laundering (AML) failures. Earlier, Bithumb received a $24 million fine and a six-month partial suspension for similar AML shortcomings. Pressure on exchanges surged after a Bithumb error that mistakenly sent customers 620,000 Bitcoin instead of 620,000 won, prompting calls for stronger oversight and even proposals such as crypto circuit breakers.
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