South Korea sentences Delio CEO to 15 years in prison for $50 million crypto fraud: report

South Korea has reportedly sentenced Delio CEO Jeong Sang-ho to 15 years in prison on cryptocurrency fraud charges.

According to local news outlet Newsis, the Seoul Southern District Court, presided over by Judge Jang Chan, found Jeong guilty on most charges of defrauding customers of roughly 70 billion Korean won ($49.2 million) in crypto assets.

The court found the defendant largely guilty on charges of embezzlement and of using false documents to register as a virtual asset service provider.

However, it acquitted him on the primary indictment alleging fraud of roughly 250 billion won ($175.6 million) from about 2,800 people, ruling that evidence obtained through a search and seizure of a server operator was illegally collected, according to the report. Prosecutors previously sought a 20-year sentence for Jeong.

"The defendant committed the crime of defrauding a large sum from numerous victims, and given the methods and means employed, and the scale of the damage, the crime is extremely grave,” the court said. "[Jeong] has also failed to receive forgiveness from the victims who suffered serious economic losses."

The court also ordered Jeong to be detained, citing risk of flight, according to a separate report from NoCut News.

Delio, which offered high returns on cryptocurrency deposits and promoted itself as a digital asset bank, abruptly suspended withdrawals in June 2023 and was later declared bankrupt in November 2024.