While the prosecution initially sought a 20-year term, the court narrowed the scope of the conviction after excluding evidence obtained during a server search deemed illegal. This evidentiary ruling cleared Jeong of a larger, separate fraud indictment involving roughly 250 billion won. Despite this partial acquittal, the court upheld charges of embezzlement and the use of falsified documents regarding the firm's registration as a virtual asset service provider.
In section Cryptocurrency
Delio CEO Sentenced to 15 Years for $49M Crypto Fraud
The Seoul Southern District Court sentenced Delio CEO Jeong Sang-ho to 15 years in prison, finding him guilty of defrauding customers of 70 billion won—approximately $49.2 million. Following the ruling, the judge ordered Jeong into immediate detention, citing a significant risk that the executive might attempt to flee.
Accountability for Financial Collapse
Judge Jang Chan characterized the crimes as severe, citing the scale of the losses and the systematic nature of the deception. The court emphasized that Jeong failed to provide restitution to the victims who lost access to their funds when the platform abruptly suspended withdrawals in June 2023. This collapse occurred during a broader period of instability for South Korean yield platforms, notably paralleling the crisis at Haru Invest, which faced its own legal reckoning over missing assets. Following years of litigation and the freezing of user accounts, Delio was officially declared bankrupt in November 2024.
Comments (0)
No comments yet. Be the first!