Delio’s Jeong Sang-ho Handed 15-Year Sentence Over 70B Won Crypto Scandal
South Korea’s Seoul Southern District Court has sentenced Delio CEO Jeong Sang-ho to fifteen years in jail after discovering him responsible of fraud involving almost 70 billion Korean gained ($49.2 million) in buyer crypto property. The eleventh Criminal Division, presided over by Judge Jang Chan, handed down the sentence on August 13.
The court docket additionally ordered Sang-ho to be detained attributable to considerations that he may flee.
15 Years Behind Bars
The prosecution had initially sought a 20-year jail time period, however the court docket rejected among the prosecution’s proof after accepting arguments from Sang-ho’s aspect that the search and seizure of the server of outsourcing firm Gabia was performed unlawfully.
According to the court docket, prosecutors failed to ensure Delio’s proper to take part within the search and didn’t present a listing of seized gadgets, which rendered the corporate’s database data and associated secondary proof inadmissible.
Upon sentencing, the court docket said,
“The defendant dedicated against the law of embezzling a big amount of cash from quite a few victims, and contemplating the circumstances and particulars of the crime, the means and strategies used, and the size of the harm, the character of the offense may be very severe. He has not obtained forgiveness from the victims who suffered severe financial losses because of this case.”
At the identical time, the court docket acknowledged that exterior elements had contributed to the case and famous that Sang-ho didn’t have a previous prison document involving a punishment better than a superb. The ruling represented a big discount from the prosecution’s unique case, which alleged fraud involving roughly 250 billion gained (price round $176 million) and round 2,800 clients.
After excluding proof associated to the bigger allegation, the court docket as a substitute discovered Sang-ho responsible beneath the prosecution’s different indictment involving roughly 70 billion gained and over 1,078 victims.
Crisis Linked to Haru
Delio used to supply high returns on cryptocurrency deposits and promoted itself as a digital asset financial institution. Its subsequent collapse was carefully linked to the downfall of crypto yield platform Haru Invest. Delio had reportedly placed a portion of buyer property with Haru to generate returns, which left the South Korean lender uncovered when the latter abruptly suspended withdrawals in June 2023 after citing issues involving its service supplier, B&S Holdings.
This pressured Delio to halt withdrawals shortly afterward, which ended up triggering a liquidity disaster that finally contributed to its chapter.
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