Key facts
- Delio CEO Jeong Sang-ho was sentenced to 15 years in prison by a South Korean court.
- The conviction is for defrauding over 1,100 investors in a $49 million crypto scheme.
- Delio accepted cryptocurrency deposits, promised high yields, and then blocked customer withdrawals.
- Key evidence was deemed unlawfully obtained, leading to the dismissal of the primary fraud charge.
- Jeong was convicted on fallback charges involving approximately 70 billion won ($49 million).
A South Korean court has sentenced Delio CEO Jeong Sang-ho to 15 years in prison for defrauding over 1,100 investors in a $49 million cryptocurrency scheme. Delio, which went bankrupt in November 2024, accepted bitcoin and ether deposits, promising high yields before abruptly blocking customer withdrawals in June 2023.
Prosecutors had sought a 20-year term and alleged a larger fraud amount, but the court excluded some evidence on procedural grounds. The conviction covers approximately 1,100 victims and 70 billion won ($49.3 million). The court also found Jeong guilty of dishonestly obtaining a virtual asset trading license by overstating Delio's coin holdings.
The ruling against Delio adds to a string of major crypto fraud prosecutions in South Korea, including cases involving Do Kwon of Terraform Labs and executives from the crypto exchange V Global.