Delio CEO faces two-decade prison term in $169M cryptocurrency fraud case in South Korea
Nearly 2,800 investors remain locked out of their cryptocurrency holdings following what authorities describe as 'active deceptive acts' by Jeong Sang-ho, amid South Korea's expanding regulatory enforcement against digital asset firms.
Authorities in South Korea are pushing for a two-decade prison term for Jeong Sang-ho, the chief executive of cryptocurrency deposit platform Delio, describing the alleged fraud perpetrated against thousands of investors as unprecedented in scope.
Prosecutors presented their final arguments before the Seoul Southern District Court this Thursday, demanding that Jeong be sentenced according to the Act on Aggravated Punishment of Specific Economic Crimes. They characterized his actions as intentional fraud through misleading promotional activities that resulted in approximately 2,800 victims being unable to retrieve their digital assets, as reported by the Korean news outlet Yonhap.
The defendant's active deceptive acts and false promotion have resulted in numerous victims, and the scale of the damage is massive
According to prosecutors' statements, they further noted that Jeong has been "exacerbating their suffering by evading responsibility and maintaining an uncooperative attitude."
The Delio platform functioned as a cryptocurrency deposit service offering investors attractive high-interest yields on digital currencies locked in for predetermined timeframes. Without warning on June 14, 2023, the platform halted all withdrawal operations, effectively freezing client holdings valued at 250 billion Korean won ($169 million). The Seoul court subsequently issued a bankruptcy ruling for the firm in November 2024.
Delio CEO acknowledges harm done to investors
Jeong's defense counsel recognized the damage inflicted upon investors. According to reports, his lawyer stated, "We are aware of the victim's suffering and feel a deep sense of responsibility," while indicating that Jeong intends to provide restitution to affected parties should he be found not guilty.
The indictment against Jeong was filed in April 2025, accusing him of misappropriating $169 million worth of cryptocurrency holdings from investors throughout a span of approximately two years, spanning from August 2021 through June 2023.
The initial trial judgment has been set for July 16.
South Korea launches crackdown on exchanges
This development arrives as South Korea initiates an aggressive regulatory enforcement campaign targeting cryptocurrency trading platforms. In recent weeks, authorities imposed financial penalties on Coinone, which ranks as the nation's third-largest digital asset exchange, and mandated a temporary suspension of certain business activities due to deficiencies in Anti-Money Laundering compliance.
This enforcement action represents the second major regulatory intervention within several months, coming after Bithumb received a $24 million penalty and was subjected to a six-month partial operational suspension in March for comparable Anti-Money Laundering compliance shortcomings. Regulatory scrutiny of trading platforms became more intense following an incident where Bithumb erroneously transferred 620,000 Bitcoin to customer accounts, valued at approximately $42 billion during that period, when the intended amount was 620,000 Korean won.