South Korea Seeks 20-Year Sentence for Delio CEO in $169M Crypto Fraud Case

South Korean prosecutors are seeking a 20-year prison sentence for Jeong Sang-ho, the CEO of crypto deposit service Delio, over an alleged $169 million crypto fraud that left nearly 2,800 investors without access to their funds.

The request was made during closing arguments at the Seoul Southern District Court, with prosecutors citing deliberate deception and false promotion under the Act on Aggravated Punishment of Specific Economic Crimes. Delio's crypto deposit service had promised investors high-interest returns on coins deposited for a fixed period, but the platform abruptly suspended withdrawals on June 14, 2023, freezing customer assets worth 250 billion Korean won ($169 million).

Jeong was indicted in April 2025 on charges of embezzling $169 million in crypto assets from victims over roughly two years, between August 2021 and June 2023. The first-instance verdict is scheduled for July 16. The case is part of South Korea's widening crackdown on the crypto industry, with the country having recently fined Coinone, the country's third-largest exchange, and ordered a partial business suspension over Anti-Money Laundering failures.

The regulatory pressure on crypto exchanges in South Korea has intensified in recent months, with Bithumb also facing a $24 million fine and six-month partial suspension in March for similar Anti-Money Laundering failures. The crackdown comes as the country seeks to strengthen its oversight of the crypto industry and protect investors from fraudulent activities.

Delio's CEO has acknowledged the harm caused to investors, with his legal team expressing a deep sense of responsibility and a willingness to compensate victims if acquitted. The case highlights the need for stronger regulations and investor protections in the crypto industry, as well as the importance of holding individuals and companies accountable for fraudulent activities.