Delio CEO sentenced to 15 years in prison on crypto fraud in South Korea
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Jeong Sang-ho, CEO of Delio, was sentenced by a South Korean court to 15 years in prison for defrauding users of approximately $50 million in cryptocurrency. The Seoul Southern District Court found him guilty of embezzlement and using a false virtual asset trading license. Despite this, he was not detained for defrauding users of a larger amount reportedly totaling $175 million.
Why it matters
The court noted that many victims suffered severe financial losses from Delio’s actions, causing economic damage that is hard to recover. This case highlights ongoing issues with crypto-related fraud in South Korea, affecting users and shaking trust in digital asset platforms.
Key context
Delio launched in 2022 as a "digital asset bank" offering high interest on crypto deposits. The exchange froze withdrawals in June 2023 and filed for bankruptcy in November 2024, which preceded Jeong’s indictment in April 2025. The sentencing is one of several recent high-profile crypto fraud cases in South Korea, including Terraform Labs co-founder Do Kwon’s conviction.
Key numbers and entities
The key entities involved are Delio and its CEO Jeong Sang-ho. The court cited about 70 billion won (approximately $49.3 million) in defrauded virtual assets. Other figures mentioned include a broader fraud amount of $175 million allegedly involved, though Jeong did not receive detention specifically for this. Related figures include Do Kwon’s 15-year prison sentence in the US following Terraform Labs’ collapse.
What remains unclear
The source does not clarify why Jeong did not receive detention concerning the full $175 million fraud claim or provide details about the recovery process for victims. No further legal outcomes or actions against other involved parties are mentioned.