Prosecutors Seek 20-Year Term for Delio CEO Jeong Sang-ho

The Seoul Southern District Court heard closing arguments Thursday in the case against Jeong Sang-ho, CEO of crypto deposit service Delio, where prosecutors requested a 20-year prison term. Jeong was indicted in April 2025 after Delio suspended customer withdrawals in June 2023.

Prosecutors allege Jeong diverted about 250 billion won (roughly $169 million) in crypto assets belonging to some 2,800 customers between August 2021 and June 2023. He faces charges under the Act on Aggravated Punishment of Specific Economic Crimes.

They argued Jeong ran the deposit service with deceptive practices and false promotion and that he compounded customer losses by avoiding responsibility and maintaining an “uncooperative attitude” during the investigation and court proceedings. Prosecutors contended those factors justify a severe sentence under the law for serious economic offenses.

The case is linked to service disruptions involving investment firm Haru Invest. Authorities sought an arrest warrant last year for a suspect surnamed Bang, who holds a majority stake in B&S Holdings. Haru has identified B&S as a source of the disruptions and tied it to a 350 billion won loss in the collapse of FTX.

The defense has expressed willingness to address customer losses if Jeong is acquitted. Victims affected by the withdrawal freeze have urged the court to impose a “severe” punishment. The court is scheduled to deliver a first-instance ruling on July 16.

Delio operated as a crypto asset deposit service before halting withdrawals, prompting regulatory and criminal scrutiny of asset management and client protections at local crypto firms. The prosecution's case centers on the movement and alleged misuse of customer assets and whether company leaders misrepresented the business or acted in bad faith while customers' funds were frozen.