On Thursday, April 30, 2026, prosecutors in Seoul have sought a 20-year prison sentence for Delio CEO Jeong Sang-ho in a major crypto fraud case. The request came during final arguments on April 30, 2026, at the Seoul Southern District Court.
The prosecution filed charges under the Act on Specific Economic Crimes. The case focuses on alleged embezzlement linked to Delio, a virtual asset deposit platform. Authorities presented the matter as a serious instance of crypto fraud.
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$180M Crypto Fraud and Delio Collapse
Prosecutors claim that Jeong embezzled approximately 250 billion Korean won, or around $180 million worth, of digital assets. The money was stolen out of close to 2,800 investors in the period between August 2021 and June 2023. The amount of losses made the case one of the biggest crypto fraud cases in the country.
Delio had already made a splash by providing high-yield returns on Bitcoin and Ethereum deposits. The platform was a crypto bank on the domestic market. On June 14, 2023, it stopped its operations when withdrawals were suddenly halted.
During the trial, prosecutors were critical of the actions of Jeong. They claimed he was evasive and displayed a non-cooperative attitude. This is a crypto fraud where victims attended hearings and demanded tough actions.
Jeong and his legal team showed a strong feeling of responsibility but no criminal intent. The defense maintained that he would attempt to compensate victims in case of an acquittal. This statement drew strong objections from attendees in court.
South Korea Tightens Rules After Crypto Fraud Case
Victims urged the court to consider the case as a precedent crypto-fraud case. Their calls came after South Korea enacted the Virtual Asset User Protection Act in 2024. The act enhanced regulation of digital asset platforms.
The Delio fall has left a mark in policy debates in Seoul. The lawmakers have fixed a deadline of December 10, 2026, on a comprehensive stablecoin bill. The case still stands as one of the major reference points in current debates of crypto fraud regulation.
Stricter controls have already been developed by regulators. The Financial Services Commission eliminated withdrawal rule exceptions on April 8, 2026. Accounts can no longer bypass the 24 to 72-hour waiting period.
The first-instance verdict of the court will be passed on July 16, 2026. The industry is closely monitoring the result. A 20-year term would represent the most severe punishment in a domestic crypto fraud case.
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