Delio CEO Sentenced to 15 Years for Crypto Fraud

A Seoul court sentenced Jeong Sangho, the former chief executive of cryptocurrency platform Delio, to 15 years in prison on August 13, 2026, for defrauding customers of approximately 70 billion won (about $49.2 million) in digital assets. The Seoul Southern District Court also ordered Jeong's immediate detention, citing a risk he might flee the country. Prosecutors had originally sought a 20-year sentence for the former CEO.

The court found Jeong guilty of embezzling customer assets and of submitting false documents to register Delio as a virtual asset service provider, a government-recognized category for crypto businesses. An accounting firm report used for the registration overstated the company's coin holdings by about 47.6 billion won (approximately $34 million), according to the court's findings. Judges stated that Jeong obtained the company's license dishonestly and promoted services that Delio lacked the capacity to provide.

Delio operated as a cryptocurrency deposit and lending company, marketing itself as a digital asset bank. Customers deposited bitcoin, ethereum, and other crypto assets in exchange for interest payments, with the platform advertising guaranteed...