South Korean prosecutors seek 20-year prison sentence for CEO of crypto asset custody service provider Delio

Techub News reports, citing Yonhap News via The Block, that South Korean prosecutors in their closing arguments at the Seoul Southern District Court accused Delio, a crypto asset custodian service provider, CEO Jeong Sang-ho of violating the Act on the Aggravated Punishment of Specific Economic Crimes, and sought a 20-year prison sentence for him.

According to reports, prosecutors charged that Jeong's actions during Delio's operations led to approximately 2,800 victims having about 250 billion won (approximately 168.8 million USD) in crypto assets misappropriated between August 2021 and June 2023 over a two-year period. The prosecutors also pointed out that the defendant engaged in deceptive behavior and false advertising, and added that he evaded responsibility and maintained an "uncooperative attitude" throughout the legal proceedings, thereby exacerbating the victims' losses. Although the defense stated that it would compensate customer losses if Jeong was acquitted, the victims affected by the asset freeze urged the court to impose "severe" punishment. The court is scheduled to deliver its first-instance verdict on July 16.