South Korean Prosecutors Seek 20-Year Term for Delio CEO

South Korean prosecutors have requested a 20-year prison sentence for Jeong Sangho, chief executive of the cryptocurrency deposit platform Delio, accusing him of embezzling customer assets and deceiving nearly 2,800 investors.

During closing arguments Thursday at the Seoul Southern District Court, prosecutors invoked the Act on Aggravated Punishment of Specific Economic Crimes, describing Jeong's actions as deliberate deception and false promotion. They alleged he diverted approximately 250 billion won, or about $169 million, in crypto assets from customers between August 2021 and June 2023. "The defendant's active deceptive acts and false promotion have resulted in numerous victims, and the scale of the damage is massive," prosecutors said, according to reports. They further noted Jeong's uncooperative stance and lack of remorse during the investigation.

Delio offered high-interest returns on cryptocurrency deposits for fixed terms, attracting significant user funds. On June 14, 2023, the platform suspended withdrawals, freezing customer assets worth 250 billion won. A Seoul court declared the company bankrupt in November 2024, leaving investors with limited recovery options....