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[SITUATION] · [QUIET] · [BUSINESS]
2 clusters · 5 sources · 4 days · First seen · Last updated
Delio cryptocurrency fraud sentencing in South Korea
Overview
Jeong Sang-ho, the former CEO of the South Korean cryptocurrency platform Delio, has been sentenced to 15 years in prison by the Seoul Southern District Court. The court found Jeong guilty of fraud and using forged documents to obtain a virtual asset service provider license.
Delio marketed itself as a ‘digital asset bank,’ promising high interest rates on cryptocurrency deposits such as Bitcoin and Ethereum. In June 2023, the platform abruptly froze all user withdrawals, citing liquidity issues, resulting in losses of approximately 70 billion won (roughly 49.3 million USD) for more than 1,100 investors.
While prosecutors initially sought a 20-year sentence and brought charges involving a larger sum of 175 billion won, the court acquitted Jeong of the largest fraud charge because central evidence was deemed to have been obtained illegally. Despite this, the court emphasized the severity of the proven crimes and the economic damage caused to victims. Jeong was taken into custody immediately following the verdict due to flight risks.
Entities
Jeong Sang-ho · Delio · Samsung Securities · Seoul Southern District Court · South Korea
Timeline
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10 days ago
[BUSINESS] 2 sourcesSouth Korea sentences Delio CEO to 15 years for $50 million crypto fraudSouth Korean authorities have sentenced Delio CEO Jeong Sang-ho to 15 years in prison for a $50 million crypto fraud that left over 1,100 investors unable to access their funds.
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13 days ago
[BUSINESS] 3 sourcesDelio CEO Jeong Sang-ho sentenced to 15 years for crypto fraudFormer Delio CEO Jeong Sang-ho has been sentenced to 15 years in prison in South Korea for cryptocurrency fraud and using forged licenses to defraud users of approximately 70 billion won.
Sources
blocktempo.com · btc-echo.de · koreaherald.com · thecooldown.com · theedadvocate.org