# Delio CEO Jeong Sang-ho Receives 15-Year Sentence for $49.2M Crypto Fraud South Korean court convicts Delio CEO in a major crypto fraud case. - **Source:** [CryptoPotato](https://brifing.si/source/bd22636b-ec8d-42a8-8cca-1937c50e0f6c) - **Published:** 2026-08-16 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/614d5a2c-09e2-46ec-918a-8898181e2406 ## Delio CEO Jeong Sang-ho's Conviction South Korea's Seoul Southern District Court convicted Delio CEO Jeong Sang-ho of fraud involving nearly 70 billion Korean won ($49.2 million) in customer crypto assets. The court sentenced Sang-ho to 15 years in prison and ordered his detention due to flight risk. The prosecution initially sought a 20-year prison term. ## Court's Reasoning The court stated that Sang-ho embezzled a large amount of money from numerous victims and that the nature of the crime was very serious. However, it acknowledged that Sang-ho had no prior criminal record involving a punishment greater than a fine and that external factors contributed to the case. The court rejected some of the prosecution's evidence. ## Illegal Server Search The court ruled that the prosecution's search of Delio's servers was illegal. The prosecution failed to guarantee Delio's right to participate in the search and did not provide a list of seized items. As a result, the company's database information and related secondary evidence were deemed inadmissible. ## Connection to Haru Invest Delio's collapse was closely linked to the downfall of crypto yield platform Haru Invest. Delio had placed a portion of customer assets with Haru. When Haru abruptly suspended withdrawals in June 2023 due to issues with its service provider, B S Holdings, Delio was forced to halt withdrawals shortly afterward, triggering a liquidity crisis. ## Prosecution's Allegations The prosecution initially accused Sang-ho of fraud involving approximately 250 billion won ($176 million) and around 2,800 customers. However, the court rejected evidence related to this larger allegation and convicted Sang-ho under the prosecution's alternative indictment involving approximately 70 billion won and over 1,078 victims. ## Delio's Business Model Delio promoted itself as a digital asset bank, offering high returns on cryptocurrency deposits. However, its connection to Haru Invest and the resulting liquidity crisis led to its collapse. This caused significant economic losses for its customers. ## Court's Assessment The court emphasized the seriousness of Sang-ho's crime while acknowledging that external factors played a role. It noted that Sang-ho had no prior criminal record involving a punishment greater than a fine and had not sought forgiveness from the victims. The court significantly reduced the sentence sought by the prosecution. ## Trust Crisis in the Crypto Sector The collapse of Delio and Haru Invest caused a trust crisis in South Korea's crypto sector. The misuse of customer assets and management deficiencies highlighted the need for stricter regulations. This incident serves as an important lesson for crypto investors. ## Sources covering this story - https://cryptopotato.com/delios-jeong-sang-ho-handed-15-year-sentence-over-70b-won-crypto-scandal/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._