The court found the founder of Delio guilty of embezzling client assets and using forged documents to register the company as a virtual asset service provider. Previously, the prosecution had requested 20 years in prison for Sang-ho, but the court reduced the sentence to 15 years, acquitting him on the most significant charge brought by the prosecution. Law enforcement claimed that the man deceived about 2,800 people out of 250 billion won ($175.6 million).
However, the court stated that the evidence gathered during searches for this charge was questionable and obtained illegally—during a search involving the server operator. The court excluded this evidence from consideration in the case but acknowledged the seriousness of the defendant's financial crimes. The court also ordered the entrepreneur to be taken into custody to prevent him from fleeing law enforcement.
The Delio platform positioned itself as a digital bank, promising clients stable and high returns from cryptocurrency deposits. In June 2023, Delio suddenly suspended withdrawals, leaving thousands of depositors without access to their savings. In November 2024, the platform was declared bankrupt.
Last year, South Korea's Financial Services Commission (FSC) promised to ban interest payments on stablecoins to prevent a massive outflow of funds from bank deposits. In May, South Korean prosecutors indicted the organizers of the CatFi memecoin scheme, which caused investor losses exceeding $650,000.
