Authorities alleged that Jeong orchestrated the embezzlement of roughly 250 billion won (about $168.8 million) in digital assets, affecting approximately 2,800 investors between August 2021 and June 2023. Prosecutors further claim he misled customers through deceptive practices and exaggerated promotions, worsening the financial damage.
Today, April 30th, South Korean prosecutors have asked the Seoul Southern District Court to impose a 20-year prison sentence on Jeong Sang-ho, the chief executive of crypto asset deposit platform Delio. The request came during closing arguments on Thursday, marking a critical moment in one of the country’s most closely watched crypto-related trials.
South Korea’s push for a 20-year term for the CEO of Delio in a $169M crypto case highlights the increasing pressure on industry leaders amid regulatory scrutiny. As crypto markets mature, the stakes are higher for compliance and transparency. This is a wake-up call for others in…
— Gaal (@Gaal_ai) April 30, 2026
Prosecutors push for harsh penalty in Delio collapse case
According to local reports from Yonhap News Agency, Jeong faces charges under South Korea’s Act on Aggravated Punishment of Specific Economic Crimes. Prosecutors argue that his conduct during Delio’s operations led to massive financial losses for users, following the platform’s abrupt suspension of withdrawals in June 2023.
The case has drawn national attention as it reflects broader concerns about oversight and accountability within the crypto sector, especially after a wave of platform failures shook investor confidence.
Related: South Korea Arrests 23 in Crypto Laundering Ring Linked to Cambodia Phishing Network
Allegations of fraud, investor losses, and industry fallout
The investigation also ties into a wider network involving investment firm Haru Invest and B&S Holdings. A key figure, identified as Bang, is believed to hold a majority stake in the latter and has been linked to disruptions that contributed to the withdrawal freeze. Haru Invest previously stated it suffered losses of about 350 billion won following the collapse of FTX, compounding the crisis.
While Jeong’s legal team has indicated a willingness to address customer losses if he is acquitted, affected investors have urged the court to deliver a strong sentence. Many victims argue that accountability is essential to restoring trust in South Korea’s crypto market.
The court is expected to issue its first ruling on July 16, a decision that could set a precedent for how the country handles major crypto fraud cases going forward.
South Korea continues building its approach to crypto-related financial crime
The country has pursued several high-profile cases involving digital-asset platforms and their executives, including the collapse of Terraform Labs and investigations into other crypto investment and lending businesses.
The Delio case involves a business model that offered customers returns on deposited crypto. That model can create significant risks when a platform uses customer assets for lending, trading or other strategies while customers expect to be able to withdraw their funds. Once withdrawals stop, the difference between a liquidity problem and a deeper solvency or fraud issue becomes critical.
South Korea’s response has increasingly focused on preventing that type of failure through stronger supervision and greater accountability for executives.
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