Delio CEO Jeong Sang-ho hit with 20-year prison demand in crypto fraud case

Prosecutors in South Korea have requested a 20-year prison sentence for Jeong Sang-ho, CEO of Delio, over alleged large-scale crypto embezzlement.

Summary

• South Korean prosecutors have sought a 20-year prison term for Delio CEO Jeong Sang-ho over alleged embezzlement of about 250 billion won from nearly 2800 users.
• Authorities told the Seoul Southern District Court that Delio halted withdrawals in June 2023 after offering up to 10.7% APR, with prosecutors accusing Jeong of deceptive promotion and misconduct.
• Victims have called for strict punishment while the defense has said it will compensate users if acquitted, with the court set to deliver its ruling on July 16.

According to Yonhap News Agency, the request was made during closing arguments at the Seoul Southern District Court on Thursday, where Jeong was charged under the Act on Aggravated Punishment of Specific Economic Crimes.

Yonhap reported that prosecutors accused Jeong of misappropriating about 250 billion won, around $168.8 million, in crypto assets from roughly 2,800 users between August 2021 and June 2023. 

Authorities told the court that Delio halted withdrawals in June 2023, at the time citing market volatility and stating it would do its “best to protect the assets of our customers while quickly grasping the facts and aftermath related to this situation.”

The case traces back to Delio’s operations as a crypto deposit and lending platform that offered returns of up to 10.7% APR on assets such as bitcoin, ether, and USDT, according to the company’s earlier disclosures. 

Yonhap noted that prosecutors linked the withdrawal freeze to deceptive conduct and false promotion, arguing that Jeong’s actions worsened customer losses while he avoided responsibility during the investigation.

Authorities also tied the incident to a wider disruption involving Haru Invest and B&S Holdings, where a figure surnamed Bang held a majority stake. According to the report, Jeong was indicted in April 2025, nearly a year after South Korean authorities sought an arrest warrant for Bang, who was identified as a key figure behind the suspension of withdrawals across related platforms.

Haru Invest previously stated that it had incurred losses of 350 billion won, around $236 million, due to exposure to the FTX collapse, which contributed to a chain reaction affecting services tied to Delio. Prosecutors told the court that Jeong’s conduct during this period intensified financial damage for users.

Victims affected by the freeze have urged the court to impose a severe sentence, while the defense has said it is willing to address customer losses if Jeong is acquitted. The court is scheduled to deliver its first-instance ruling on July 16.