Delio CEO Sentenced to 15 Years in Prison for Crypto Fraud in South Korea

South Korea's Seoul Southern District Court's 11th Criminal Division sentenced Delio CEO Jeong Sang-ho to 15 years in prison after he was found guilty of defrauding users out of approximately $49.3 million in crypto assets. The court ruled that Jeong, while operating the 2022-launched exchange, falsely obtained a virtual asset trading license and defrauded victims. Despite claims of $175 million in fraud, the court denied detention. Delio, marketed as a 'digital asset bank' offering high interest on crypto deposits, froze withdrawals in June 2023 and declared bankruptcy in November 2024. This marks South Korea's first significant crypto fraud trial. Meanwhile, Terraform Labs co-founder Do Kwon, who evaded authorities for nearly a year after the company's collapse, was arrested in Montenegro and sentenced to 15 years in prison in the US in December 2025. The ruling underscores tightening crypto regulations in the region.