Jeong Sang-ho was convicted of embezzlement and fraud after Delio collapsed, leaving investors with $49.3 million in losses.
A Seoul court sentenced Delio CEO Jeong Sang-ho to 15 years in prison for defrauding users of approximately $49.3 million in crypto assets. The ruling followed charges of embezzlement and using a falsified trading license to mislead investors.
Delio, launched in 2022 as a digital asset bank, froze withdrawals in June 2023 and filed for bankruptcy in November 2024. Prosecutors had accused Jeong of additional fraud totaling $175 million, though he was not detained for that portion of the case.
The case highlights ongoing risks in South Korea’s crypto sector, following high-profile frauds like Terraform Labs. The court noted significant economic damage to victims, with recovery of lost funds deemed unlikely.