Delio CEO Jeong Sang-ho sentenced to 15 years in prison for $50 million crypto fraud in South Korea

Aug 13, 2026

A South Korean court has sentenced Delio CEO Jeong Sang-ho to 15 years in prison for defrauding investors of 70 billion won ($49.2 million) in cryptocurrency. While the court convicted Jeong of embezzlement and using falsified documents to secure a virtual asset service provider license, it acquitted him of a larger 250 billion won fraud charge. This acquittal followed a ruling that server database evidence was seized illegally. Delio, which marketed itself as a digital asset bank, froze withdrawals in June 2023 and was declared bankrupt in November 2024.

Jeong Sang-ho prison sentence

▪The Seoul Southern District Court ordered Delio CEO Jeong Sang-ho to be detained immediately following his sentencing due to concerns that he posed a flight risk.
▪South Korean prosecutors had previously sought a 20-year prison sentence for Delio CEO Jeong Sang-ho under the Act on the Aggravated Punishment of Specific Economic Crimes.
▪The Seoul Southern District Court sentenced Delio CEO Jeong Sang-ho to 15 years in prison on August 13, 2026, for cryptocurrency fraud.

Illegal evidence exclusion ruling

▪The exclusion of the server database evidence forced prosecutors to rely on narrower fallback charges covering approximately 1,100 victims and 70 billion won in virtual assets.
▪The Seoul Southern District Court ruled that database evidence seized from Delio's server host, Gabia, was obtained illegally because prosecutors failed to guarantee Delio's right to participate in the search or provide a list of seized items.

Primary fraud charge acquittal

▪The Seoul Southern District Court acquitted Delio CEO Jeong Sang-ho of allegations involving 41 additional victims because no supporting evidence was submitted for those cases.
▪The Seoul Southern District Court acquitted Delio CEO Jeong Sang-ho of the primary fraud indictment alleging he defrauded roughly 2,800 people of 250 billion won.

Delio withdrawal freeze

▪Delio's withdrawal freeze was tied to financial disruptions at Haru Invest and B&S Holdings, which suffered losses linked to the collapse of the cryptocurrency exchange FTX.
▪Delio abruptly suspended customer withdrawals on June 14, 2023, after marketing itself as a digital asset bank offering high yields on cryptocurrency deposits.

Fraudulent VASP registration documents

▪The falsified accounting report submitted by Delio CEO Jeong Sang-ho overstated Delio's cryptocurrency holdings by approximately 47.6 billion won.
▪The Seoul Southern District Court convicted Delio CEO Jeong Sang-ho of submitting a falsified accounting firm report to register Delio as a virtual asset service provider.

Delio bankruptcy declaration

▪Following Delio's November 2024 bankruptcy declaration, liquidation proceedings were initiated to sell the company's assets and distribute funds to creditors.
▪Delio was declared bankrupt by South Korean authorities in November 2024, more than a year after suspending customer withdrawals.