Delio CEO Jeong Sang-ho Sentenced to 15 Years for $49M Fraud
Jeong Sang-ho, CEO of South Korean crypto deposit platform Delio, has been sentenced to 15 years in prison by the Seoul Southern District Court for fraud involving approximately 70 billion won, or 49 million dollars. The ruling was issued by Criminal Division 11, led by Judge Jang Chan, and is five years shorter than the term sought by prosecutors. The court upheld only part of the prosecution's case, convicting Jeong mainly on fallback charges after a search and seizure at Gabia, the company hosting Delio's servers, was deemed unlawful. This ruling resulted in the exclusion of key evidence, leading to the indictment being significantly weakened. Jeong was accused of defrauding around 2,800 individuals of about 250 billion won, or 176 million dollars, between August 2021 and June 2023. However, the court's decision allowed only the reserve case involving about 1,100 victims to proceed. Jeong was also found guilty of registering Delio as a virtual asset service provider using a falsified accounting report that overstated its coin holdings by approximately 47.6 billion won, or 34 million dollars. The court noted that Jeong had promoted Delio as a crypto bank despite lacking the necessary capacity to operate it and had evaded responsibility by blaming bankruptcy for his failure to return customer assets. The verdict was initially scheduled for July 16 but was delayed due to evidence-related issues raised by Jeong's legal team.
-- Price
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