The Seoul Southern District Court recently sentenced Delio CEO Jeong Sang-ho to 15 years in prison. The ruling by the 11th Criminal Division found Jeong guilty of embezzlement and using a fake trading license. Through his scheme, Jeong caused virtual asset users losses of up to 70 billion won, equivalent to $49.3 million.
This sentence extends the line of South Korean crypto industry executives ending up in court, though the details of the calculation leave one question remaining.
Fake License Trick Under the Guise of a Crypto Bank
Delio entered the crypto market in 2022 through a targeted marketing strategy. The company positioned itself as a digital asset bank and lured potential customers by offering high interest rates for every crypto deposit stored on the platform. To convince investors that their funds were in safe hands, the platform claimed to operate under the umbrella of local regulations.
However, that guarantee of protection turned out to be a mere illusion. In court, the judge noted and proved that Jeong manipulated legal requirements. He was found guilty of obtaining a virtual asset trading license through fraudulent means and using that fake permit while operating Delio. This trick successfully retained capital from trusting investors, until crisis finally hit in June 2023 when the company suddenly froze all customer withdrawal access. Delio failed to survive and declared bankruptcy in November 2024, followed by prosecutors indicting Jeong on fraud charges in April 2025.
Where is the Remaining $175 Million?
This ruling is the latest evidence of South Korean law enforcement’s tough stance in handling local crypto exchange crime cases. Jeong’s case is closely linked to a series of other major crypto fraud incidents, and his fate now resembles that of Terraform Labs founder Do Kwon, who previously received a 15-year prison sentence in the United States in December 2025.
The main highlight of this trial was how the court separated the impact of Jeong’s crime. The facts of the trial actually proved that the total value of the fraud affecting users reached $175 million. However, the court ruled that the CEO would not receive prison time for the $175 million portion. The 15-year prison sentence he received focused entirely on the initial charges of embezzlement worth $49.3 million and the counterfeiting of a trading license. This decision allowed the founder to avoid prison time for the majority of the lost funds.
Consequences of Deposited Funds
The Delio case once again highlights the fatal risk of depositing crypto assets with centralized entities. While authorities have handed down prison sentences to exchange executives, retail customers who initially chased high-interest promises often still have to accept the reality that their money is rarely returned.
As reported by Cointelegraph.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
