TLDR
- South Korea prosecutors requested a 20-year prison term for Delio CEO Jeong Sang-ho in a crypto fraud case.
- Authorities accused Jeong of embezzling about $168.8 million from nearly 2,800 investors over two years.
- Prosecutors said Jeong used misleading promotions and misused customer crypto assets during Delio’s operations.
- The case is linked to wider disruptions involving Haru Invest and losses tied to the FTX collapse.
- Victims urged the court to impose a strict sentence due to financial harm from halted withdrawals.
South Korean prosecutors have requested a 20-year prison sentence for Delio CEO Jeong Sang-ho over alleged crypto fraud. The request came during closing arguments at the Seoul Southern District Court on Thursday. Authorities accuse Jeong of embezzling about $168.8 million from thousands of investors through deceptive practices.
South Korea Prosecutors Outline Charges in Delio Case
Prosecutors stated that Jeong violated economic crime laws while managing Delio’s crypto deposit services. They argued that his actions caused large financial losses for roughly 2,800 customers over two years.
They said the alleged embezzlement occurred between August 2021 and June 2023 through misuse of deposited crypto assets. They also claimed Jeong promoted misleading information about the platform’s stability and operations.
Prosecutors described his conduct as deceptive and harmful to investors who trusted the service. They told the court that Jeong maintained an “uncooperative attitude” during investigations and proceedings.
They further argued that his actions worsened losses after Delio abruptly stopped withdrawals in June 2023. The prosecution insisted that strict punishment is necessary given the scale of losses.
Case Links to Broader Disruptions in Crypto Services
The case connects to earlier disruptions involving investment firm Haru Invest and another entity linked to B&S Holdings. Authorities previously sought an arrest warrant for a suspect named Bang tied to these service interruptions.
Bang reportedly holds a majority stake in B&S Holdings, which Haru identified as a source of operational issues. Haru said it lost 350 billion won, or about $236 million, following the FTX collapse.
Prosecutors argued that these linked failures contributed to a chain reaction affecting customer withdrawals across platforms. They stated that Delio’s halt in withdrawals formed part of this broader disruption.
Jeong was formally indicted in April 2025 after authorities built their case over several months. The indictment followed earlier investigations into the freeze that impacted thousands of users.
Defense Response and Pending Court Decision
The defense told the court that Jeong is willing to address customer losses if acquitted. However, prosecutors challenged this stance and questioned the timing of such claims.
Victims affected by the withdrawal freeze urged the court to impose a strict sentence. They argued that the losses caused financial harm and demanded accountability from company leadership.
Prosecutors emphasized that the case involves large-scale financial misconduct and requires a firm response. They asked the court to consider the number of victims and the duration of alleged offenses.
The Seoul Southern District Court is scheduled to deliver its first-instance ruling on July 16. The decision will determine Jeong’s legal responsibility in the case.
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