Key Points
- Prosecutors in South Korea have called for a two-decade prison sentence for Delio CEO Jeong Sang-ho following cryptocurrency fraud allegations.
- The charges involve approximately $168.8 million allegedly embezzled from close to 2,800 investors across a two-year period.
- Authorities claim Jeong employed deceptive marketing tactics and improperly handled customer cryptocurrency holdings during the platform’s operation.
- The legal proceedings connect to broader industry disruptions involving Haru Invest and financial damage stemming from the FTX bankruptcy.
- Affected investors have petitioned the court for severe penalties citing substantial financial damage from suspended withdrawal services.
Authorities in South Korea have formally demanded a 20-year imprisonment term for Jeong Sang-ho, the chief executive of Delio, amid allegations of crypto fraud. The petition was presented during final statements at the Seoul Southern District Court this past Thursday. Officials allege Jeong misappropriated approximately $168.8 million from numerous investors through fraudulent operations.
Prosecution Details Allegations Against Delio Leadership
Legal authorities stated that Jeong breached economic crime statutes while overseeing Delio’s cryptocurrency deposit platform. They contended that his alleged misconduct resulted in substantial financial damage to approximately 2,800 clients spanning two years.
According to prosecutors, the purported misappropriation took place from August 2021 through June 2023 via improper handling of deposited crypto assets. They additionally accused Jeong of disseminating false information regarding the platform’s financial health and operational integrity.
Legal representatives characterized his behavior as deliberately misleading toward investors who placed confidence in the service. They informed the court that Jeong displayed a “resistant demeanor” throughout investigative procedures and legal proceedings.
They additionally contended that his alleged actions amplified investor damage following Delio’s sudden suspension of withdrawal services in June 2023. The prosecution maintained that severe sentencing is warranted considering the magnitude of financial harm.
Connections to Widespread Cryptocurrency Platform Failures
The legal action ties into previous service disruptions affecting investment platform Haru Invest and another organization associated with B&S Holdings. Officials had earlier pursued arrest authorization for an individual named Bang connected to these operational interruptions.
Bang allegedly controls a controlling interest in B&S Holdings, which Haru designated as a contributor to operational difficulties. Haru reported losses totaling 350 billion won, equivalent to roughly $236 million, after the FTX collapse.
Prosecutors maintained that these interconnected failures triggered a cascading effect impacting customer withdrawal capabilities across multiple platforms. They asserted that Delio’s withdrawal suspension represented a component of this wider industry disruption.
Jeong received formal indictment in April 2025 following months of evidence compilation by authorities. The charges followed earlier inquiries into the freeze that affected thousands of platform users.
Defense Arguments and Upcoming Judicial Verdict
Defense counsel informed the court that Jeong remains prepared to compensate affected customers should he be exonerated. Prosecutors disputed this position and raised concerns about the appropriateness of such statements.
Individuals impacted by the withdrawal suspension have petitioned the court to deliver a harsh sentence. They contended that the financial damage caused severe hardship and called for corporate leadership to be held responsible.
Prosecutors stressed that the case encompasses widespread financial wrongdoing and warrants a decisive judicial response. They requested the court to weigh both the victim count and the timeframe of alleged criminal activity.
The Seoul Southern District Court has designated July 16 for its preliminary verdict. The ruling will establish Jeong’s legal culpability in the matter.
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