Delio CEO Jeong Sang-ho Found Guilty of False Reporting as a Virtual Asset Business Operator

The Seoul Southern District Court has found Jeong Sang-ho, CEO of Delio, guilty of submitting false documents during the reporting process as a virtual asset business operator. This marks the first case in which a representative of a virtual asset business has been found guilty of violating the Specific Financial Information Act. The court sentenced Jeong to 15 years in prison. The court determined that Jeong submitted inflated due diligence reports and operated for 1 year and 4 months. The due diligence report submitted by Delio indicated a digital asset holding amount greater than the customer deposits, but it was revealed to be merely figures from an internal database rather than the actual holdings. Jeong's side claimed that the digital assets actually existed, but the court concluded that the specific storage and operational status could not be verified. Additionally, an employee responsible for the virtual asset business reporting had reported a lack of unverified assets to Jeong, who reportedly responded that he would resolve the issue. The court emphasized that the holding amount is a crucial factor for customer protection and the acceptance of reports by the Financial Intelligence Unit (FIU), concluding that Jeong approved the submission of false reports.

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