South Korean prosecutors have requested a 20-year jail sentence for the CEO of crypto deposit service Delio, calling the dimensions of alleged fraud in opposition to hundreds of buyers “huge.”
Throughout closing arguments on the Seoul Southern District Courtroom on Thursday, prosecutors requested the court docket to condemn Jeong Sang-ho beneath the Act on Aggravated Punishment of Particular Financial Crimes, citing what they described as deliberate deception and false promotion that left practically 2,800 victims with out entry to their funds, according to the Korean information company Yonhap.
“The defendant’s lively misleading acts and false promotion have resulted in quite a few victims, and the dimensions of the injury is huge,” prosecutors reportedly mentioned, including that Jeong was “exacerbating their struggling by evading duty and sustaining an uncooperative angle.”
Delio operated a crypto deposit service that promised buyers high-interest returns on cash deposited for a set interval. On June 14, 2023, the platform abruptly suspended withdrawals, freezing buyer property price 250 billion Korean gained ($169 million). A Seoul court docket declared the corporate bankrupt in November 2024.
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Delio CEO acknowledges hurt performed to buyers
Jeong’s authorized group acknowledged the hurt induced. “We’re conscious of the sufferer’s struggling and really feel a deep sense of duty,” his lawyer reportedly mentioned, including that Jeong would search to compensate victims if acquitted.
Jeong was indicted in April 2025 on fees of embezzling $169 million in crypto property from victims over roughly two years, between August 2021 and June 2023.
The primary-instance verdict is scheduled for July 16.
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South Korea launches crackdown on exchanges
The information comes amid South Korea’s launch of a regulatory crackdown on crypto exchanges. Earlier this month, the country fined Coinone, the nation’s third-largest change, and ordered a partial enterprise suspension over Anti-Cash Laundering failures.
The motion marks the second such crackdown in a number of months, following a $24 million fine and six-month partial suspension handed to Bithumb in March for comparable Anti-Cash Laundering failures. The strain on exchanges intensified after Bithumb mistakenly sent prospects 620,000 Bitcoin, price round $42 billion on the time, as an alternative of 620,000 Korean gained.
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