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Delio CEO sentenced to 15 years after evidence challenge
A Seoul court voided the main fraud charge covering about 2,800 victims, leaving convictions tied to fallback charges covering roughly 1,100 victims.
South Korea's Seoul court has sentenced Delio CEO Jeong Sang-ho to 15 years in prison over fraud and for registering as a virtual asset provider using false documents, according to Decrypt citing local media.
The ruling turned on a procedural evidence issue, with the court finding that material seized from the company hosting Delio's servers, Gabia, was unlawfully obtained and therefore unusable, Decrypt reported.
That decision gutted the prosecution's primary case, which had alleged Jeong defrauded about 2,800 victims of 250 billion won, and the court instead convicted him on fallback charges tied to about 1,100 victims and 70 billion won, or roughly $49 million.
Jeong was also convicted for registering Delio using a falsified accounting firm report that prosecutors said overstated its coin holdings by about 47.6 billion won, and the court said he took more than 70 billion won from customers while promoting the platform as a crypto bank despite lacking capacity to run it, Decrypt added.