A South Korean court sentenced Delio CEO Jeong to 15 years in prison for his role in a $50 million fraud case, finding him guilty of defrauding more than 1,100 people.
Delio operated as a crypto lending platform, accepting deposits of bitcoin and ether and promising high yields to attract capital.
On June 14, 2023, Delio abruptly locked customers out of their funds. The company filed for bankruptcy in November 2024, leaving investors without access to their assets.
The Seoul Southern District Court determined that Jeong falsely obtained a virtual asset trading license, enabling him to defraud victims of approximately 70 billion won in virtual assets.
Prosecutors initially sought a 20-year sentence. The court dismissed a portion of the evidence, citing procedural deficiencies raised by the defense.
Jeong's lawyers are expected to appeal. He was originally accused of defrauding 2,800 victims before some evidence was excluded.
The verdict adds to a string of major crypto fraud cases in South Korea, including the 2022 collapse of Terraform Labs—co-founded by Do Kwon—which wiped out an estimated $40 billion in investor funds.
Separately, Kalshi, a U.S. events prediction market, is in advanced talks to raise at least $750 million in new funding at a $40 billion valuation. Sequoia Capital and Wellington Management are in discussions to lead the round, according to people familiar with the matter. The round could ultimately surpass the $750 million target.
