Jeong Sang-ho, CEO of South Korean crypto lending platform Delio, was sentenced to 15 years in prison by the Seoul Southern District Court on Aug. 13 in a fraud and embezzlement case, according to The Block. The court ordered Jeong remanded into custody over flight risk; prosecutors had sought a 20-year term. He was convicted of using falsified documents to obtain a virtual asset service provider (VASP) registration and of misappropriating user assets. The sum tied to the conviction is roughly 70 billion won (about $49.2 million). A separate major fraud charge, involving about 2,800 victims and 250 billion won (around $175.6 million), was acquitted. Delio abruptly halted withdrawals in June 2023 and declared bankruptcy in November 2024, leaving many depositors' assets frozen. The verdict shows South Korea is stepping up enforcement against crypto operators that collect deposits improperly. For depositors, it establishes criminal liability, yet how much of the frozen funds can be recovered remains another long process.
Jeong Sang-ho, CEO of crypto lending platform Delio, was handed a 15-year prison sentence on Aug. 13 by a court in Seoul, according to The Block. The Seoul Southern District Court ordered Jeong taken into custody immediately, citing the risk that he might flee. Prosecutors had asked for 20 years.
The conviction centers on Delio's pitch as a “digital asset bank”: the platform promised high yields and pulled in crypto deposits from users. The court found that Jeong used falsified documents to land a virtual asset service provider (VASP) registration and that he embezzled user assets. The amount tied to that conviction is about 70 billion won (around $49.2 million).
Still, the court cleared Jeong on the prosecution's main fraud allegation, which involved roughly 2,800 victims and 250 billion won (about $175.6 million). The presiding judge said Jeong took huge sums from many victims, and that the methods and scale of harm made the offenses extremely serious.
Delio froze withdrawals in June 2023 without warning and declared bankruptcy in November 2024, leaving depositors' assets stuck. The ruling reflects South Korea's accelerating enforcement against crypto businesses that collect funds improperly. For depositors, the sentence establishes criminal responsibility, but recovering the frozen assets is likely to be a long grind.
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