South Korean prosecutors have requested a 20-year prison sentence for Delio CEO Jeong Sang-ho over alleged crypto fraud involving roughly $169 million in investor funds.
The case centres on claims that Jeong used deceptive practices and misleading promotions that left nearly 2,800 investors unable to access their deposits after withdrawals were halted in June 2023.
“The defendant’s active deceptive acts and false promotion have resulted in numerous victims, and the scale of the damage is massive,”
Prosecutors said during closing arguments.
Delio, which offered high-yield crypto deposit products, froze assets worth 250 billion won before being declared bankrupt by a Seoul court in November 2024.
Jeong’s legal team acknowledged investor harm, stating, “We are aware of the victim's suffering and feel a deep sense of responsibility,” while indicating compensation could be pursued if he is acquitted.
The charges relate to alleged embezzlement of funds between August 2021 and June 2023, with a first-instance verdict expected on July 16.
The case comes as South Korea intensifies enforcement across the crypto sector, including fines and suspensions for exchanges over Anti-Money Laundering failures.