Prosecutors Seek 20-Year Term for Delio CEO in $169M Fraud
Prosecutors seek 20-year sentence for Delio CEO Jeong Sang-ho, alleging he embezzled $169 million and froze nearly 2,800 investors’ assets after withdrawals stopped.
Prosecutors asked a Seoul court on Thursday to sentence Delio CEO Jeong Sang-ho to 20 years in prison, saying he embezzled 250 billion won (about $169 million) and left nearly 2,800 investors unable to withdraw funds after the platform halted withdrawals on June 14, 2023.
The request came during closing arguments at the Seoul Southern District Court. Prosecutors asked the court to apply the Act on Aggravated Punishment of Specific Economic Crimes, citing deliberate deception, false promotion and the large scale of the losses.
Prosecutors told the court that the company’s promotion and operations induced many investors to place coins in fixed-term deposits that promised high interest. “The defendant’s active deceptive acts and false promotion have resulted in numerous victims, and the scale of the damage is massive,” they added, accusing Jeong of evading responsibility and remaining uncooperative.
Delio operated a crypto deposit service that guaranteed returns on coins held for set periods. Prosecutors allege the platform suspended withdrawals and moved customer crypto, actions they say amount to embezzlement from August 2021 through June 2023. A Seoul court declared Delio bankrupt in November 2024.
Jeong was indicted in April 2025 on charges that he embezzled customer assets. The first-instance verdict is scheduled for July 16.
Jeong’s legal team acknowledged the harm to investors and expressed a sense of responsibility. The defense told the court that Jeong would seek to compensate victims if he is acquitted.
The case comes amid increased enforcement of crypto rules in South Korea. Authorities recently fined Coinone and ordered a partial business suspension over anti-money-laundering failures. In March regulators fined Bithumb about $24 million and imposed a six-month partial suspension for similar shortcomings. Regulators also cited a prior operational error in which Bithumb mistakenly sent customers 620,000 Bitcoin instead of 620,000 won.
Prosecutors have requested a long prison term under the aggravated-punishment law. The court will issue its first-instance judgment on July 16.
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