Overview of the Case
In a notable case unfolding in South Korea, prosecutors are seeking an extensive 20-year prison term for Jeong Sang-ho, the chief executive of Delio, who is under scrutiny for alleged embezzlement of substantial cryptocurrency assets. At a recent session of the Seoul Southern District Court, prosecutors outlined their closing arguments, framing Jeong’s actions as a breach of the Act on Aggravated Punishment of Specific Economic Crimes.
Allegations Against Jeong Sang-ho
As reported by Yonhap News Agency, the CEO stands accused of improperly appropriating approximately 250 billion won, equivalent to about $168.8 million, from around 2,800 clients between August 2021 and June 2023. A withdrawal suspension implemented by Delio in June 2023 was attributed to market instability; however, authorities contend that it was part of a pattern of misleading practices and false advertising.
They argued that Jeong’s decisions exacerbated the financial losses experienced by users while evading accountability during the investigation process.
Delio’s Operations and Broader Implications
Delio previously functioned as a crypto lending and deposit service, boasting potential returns reaching 10.7% APR on various digital assets including bitcoin, ether, and USDT. The prosecution also connected this case to broader disruptions within the crypto landscape, notably involving Haru Invest and B&S Holdings, with the latter reportedly led by an individual known as Bang, who faced significant scrutiny from regulators.
In a related development, Jeong was formally charged in April 2025, approximately a year following authorities’ attempts to arrest Bang, described as a central figure in the suspension of withdrawals that affected multiple platforms.
Impact of the FTX Collapse
Furthermore, Haru Invest disclosed that its exposure to the collapse of the FTX exchange precipitated significant losses, estimated at 350 billion won or approximately $236 million, which in turn triggered fallout impacting Delio’s offerings.
Victims and Court Proceedings
Throughout these proceedings, victims of the withdrawal halt have expressed their desire for a stringent penalty, while Jeong’s defense team has indicated a willingness to cooperate and address customer grievances, contingent on an acquittal. The court is expected to announce its decision in this high-profile case on July 16.
