CEO of Crypto Lender Delio Gets 15 Years Over $49M Fraud

In brief

• A Seoul court sentenced Delio chief executive Jeong Sang-ho to 15 years for fraud and for registering as a virtual asset provider using false documents, according to local media.
• The court ruled evidence seized from Delio's server host was unlawfully obtained, voiding the primary charge covering 2,800 victims and 250 billion won.
• He was convicted instead on fallback charges covering roughly 1,100 victims and 70 billion won, about $49 million.

The Seoul Southern District Court has sentenced Delio chief executive Jeong Sang-ho to 15 years in prison over the collapse of the South Korean crypto deposit platform, five years short of the term prosecutors sought.
Criminal Division 11, presided over by Judge Jang Chan, handed down the ruling on Thursday afternoon, according to local outlet Newsis. The court upheld only part of the prosecution's original case and convicted Jeong largely on a set of fallback charges filed later.

The reason was procedural, with Jeong's lawyers arguing that a search and seizure carried out at Gabia, the company hosting Delio's servers, had been unlawful, and the court agreeing. Prosecutors had not guaranteed Delio's right to participate in the search and had not handed over a list of what was seized, the court found, ruling that the platform's database and everything derived from it carried no evidentiary value.