South Korean prosecutors are seeking a 20-year prison sentence for the CEO of crypto platform Delio, who is accused of embezzling approximately $169 million from 2,800 users in a case that highlights the country's widening crackdown on digital asset fraud.
"The defendant’s active deceptive acts and false promotion have resulted in numerous victims, and the scale of the damage is massive," prosecutors said during closing arguments at the Seoul Southern District Court, according to the Yonhap news agency. They added that Jeong was “exacerbating their suffering by evading responsibility and maintaining an uncooperative attitude.”
The request for a 20-year term for CEO Jeong Sang-ho comes after Delio, a crypto deposit service that promised high-yield returns, abruptly suspended withdrawals on June 14, 2023. The move froze customer assets worth 250 billion Korean won ($169 million), affecting nearly 2,800 investors. A Seoul court declared the company bankrupt in November 2024, and Jeong was indicted in April 2025.
The verdict, scheduled for July 16, could set a significant precedent for crypto-related financial crime in South Korea. The case is unfolding amid a broader regulatory offensive, with exchanges Coinone and Bithumb recently facing fines and partial suspensions for anti-money laundering failures, signaling a more stringent operational environment for the entire industry.
Jeong’s legal team acknowledged the harm caused to investors, stating they “feel a deep sense of responsibility.” The defense added that Jeong would seek to compensate victims if acquitted.
The Delio case is a focal point in South Korea's broader effort to regulate its domestic crypto market. Earlier this month, regulators fined Coinone, the country’s third-largest exchange, and ordered a partial business suspension for Anti-Money Laundering failures. This followed a similar action against Bithumb in March, which received a $24 million fine and a six-month partial suspension for related compliance breaches. The pressure on exchanges has intensified as authorities work to protect investors and prevent illicit activities, a problem highlighted by separate reports on North Korean hacking groups who have stolen over $6 billion in crypto since 2017.
This article is for informational purposes only and does not constitute investment advice.
