Woofun AI reports that South Korean prosecutors have renewed their demand for a 20-year prison sentence against Jeong Sang-ho, CEO of the defunct crypto deposit service Delio, citing massive misappropriation of user funds.

The financial scope of the alleged fraud involves approximately 250 billion won, equivalent to $190 million in virtual assets. Prosecutors charge Jeong with violating the Act on the Aggravated Punishment of Specific Economic Crimes through this misappropriation.

Additionally, he faces indictment under the Act on Reporting and Using Specified Financial Transaction Information for allegedly securing Delio’s virtual asset service provider registration via improper means.

Per Woofun AI, the sentencing hearing is scheduled for August 13 at 5:00 a.m. UTC, . The legal proceedings stem from events in June 2023, when Delio abruptly suspended withdrawals from its virtual asset deposit service. This collapse in 2023 left thousands of users unable to access their funds, triggering a wave of lawsuits and significant regulatory backlash.

If accepted, this would constitute one of the harshest sentences in a South Korean crypto fraud case involving virtual asset deposit services. Legal experts argue such a term signals a tough stance, potentially deterring misconduct in the digital asset sector.

However, the case also exposes regulatory gaps that allowed Delio to operate, prompting calls for stricter oversight of virtual asset service providers. While the trial offers accountability, full restitution of the 250 billion won remains uncertain, drawing close attention from industry observers and regulators worldwide.

The renewed prosecution request for a 20-year sentence for Delio CEO Jeong Sang-ho marks a pivotal moment in one of South Korea’s largest crypto fraud cases. As the August 13 sentencing date approaches, the outcome will critically influence investor confidence and regulatory policy in the virtual asset space.