TechFlow News, April 30: According to a Cointelegraph report, South Korean prosecutors have requested a 20-year prison sentence for Delio CEO Sang-ho Jeong during closing arguments at the Seoul Southern District Court, citing the Act on Aggravated Punishment of Specific Economic Crimes. Prosecutors allege that Jeong engaged in false advertising and active deception, resulting in the freezing of assets belonging to approximately 2,800 investors, with damages totaling roughly $169 million (approximately 250 billion KRW).
Delio abruptly suspended withdrawals on June 14, 2023, and was declared bankrupt in November 2024. Jeong’s defense counsel acknowledged harm caused to investors and stated that, should Jeong be acquitted, compensation would be pursued. The first-instance verdict is scheduled to be announced on July 16. Against this backdrop, South Korea continues to intensify regulatory enforcement against the cryptocurrency industry; recently, penalties—including fines and partial suspension of operations—have been imposed on Coinone and Bithumb for anti-money laundering (AML) violations.
