South Korea Sentences Delio CEO to 15 Years for Crypto Fraud

A South Korean court sentenced Delio CEO Jeong to 15 years in prison on August 13 after finding him guilty of fraud and related offenses involving roughly 70 billion won in customer crypto assets. The Seoul Southern District Court largely accepted prosecutors’ alternative charges covering about 1,100 victims, making the scale of customer losses central to one of Korea’s most serious crypto fraud rulings.

The court also found Jeong guilty of filing false information to register as a virtual-asset service provider. Judges said Delio had promoted itself as stable despite lacking adequate operating capability, while customers were exposed to losses the court described as difficult to recover. Evidence obtained through a disputed server search was excluded after the court found procedural violations.

Prosecutors had initially accused Jeong of defrauding roughly 2,800 people of about 250 billion won between August 2021 and June 2023, but the court convicted him on a narrower set of allegations. Delio suspended withdrawals in June 2023 and later entered bankruptcy, leaving appeal strategy and remaining victim recovery as the next legal questions.

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