South Korea Sentences Delio CEO to 15 Years for Crypto Fraud

Delio was a South Korean centralized-finance, or CeFi, lender that took bitcoin and ether deposits while promising high yields. The platform abruptly froze withdrawals on June 14, 2023, leaving customers unable to recover assets, and was declared bankrupt in November 2024. Prosecutors said CEO Jeong Sang-ho concealed mounting operating losses, investment failures and hacking damage while promoting Delio as a legitimate, stable crypto bank. The case has become a key test of South Korea’s effort to hold licensed digital-asset operators accountable for customer losses.

The Seoul Southern District Court’s Criminal Division 11 sentenced Jeong to 15 years in prison on Aug. 13, 2026, finding that he defrauded more than 1,100 customers of about 70 billion won ($50 million) and used false materials to obtain Delio’s virtual-asset registration. Prosecutors had sought 20 years on allegations involving about 2,800 victims and 250 billion won ($169 million). The court excluded much of the seized server evidence because investigators failed to protect Delio’s participation rights or provide an inventory; Jeong’s lawyers are expected to appeal.