Key Takeaways:
- Jung Sang-ho, CEO of Delio, confirmed in court that investor deposits were not guaranteed, as stated in the platform’s terms and conditions.
- Despite arguments for principal protection, Delio’s legal team emphasized the unsecured nature of assets post-FTX collapse.
- Jung faces charges of fraud, embezzlement, and breach of trust, with Delio owing creditors approximately $181 million.
Jung Sang-ho, CEO of South Korean crypto platform Delio, confirmed in court on June 25 that investors’ deposits were not guaranteed.
He emphasized that this was clear in the platform’s terms and conditions, as required by the Korea Financial Intelligence Unit (FIU).
CEO of Delio, faced intense scrutiny in the second criminal trial, where he said investors' deposits were not "principal protected."#Delio #JeongSang-hohttps://t.co/2EJ8o25Gso
— Cryptonews.com (@cryptonews) June 25, 2024
Despite creditors’ and prosecution arguments for principal protection, Jung’s legal team refuted these claims, highlighting that most of Delio’s assets were unsecured after the FTX collapse.
Jung faces charges of fraud, embezzlement, and breach of trust, with Delio owing creditors about 250 billion won ($181 million).
Delio CEO Jeong Sang-ho denies charges of falsely obtaining virtual asset business operator status and embezzling 250 billion won, stating no promise to guarantee principal; scuffle erupts post-trial with creditors. Next trial set for July 23.
— BitcoinWorld Media (@ItsBitcoinWorld) June 25, 2024
The next hearing is on July 23. Delio had received VASP approval in 2022 for its security system.
Following operational issues at its sister firm Haru Invest, which led to a suspension of withdrawals on June 13, 2023, Delio resumed partial withdrawals on June 27, 2023, after a promise to investors during a June 17 meeting.
BREAKING: 🇰🇷 Two popular lending platforms from South Korea, Haru Invest and Delio have halted withdrawals 🚨😱 pic.twitter.com/nqBBP1uaXP
— Bitcoin News (@BitcoinNewsCom) June 18, 2023
Haru Invest is suing its service partner for misappropriating customer deposits.
About The Author
Fleming Airunugba, a seasoned Web3 and crypto content expert, leverages his deep understanding of blockchain technology to bring the latest and most impactful news to the crypto community.
With a knack for engaging storytelling and strategic content creation, Fleming is dedicated to educating and inspiring his audience with insightful analysis on cryptocurrencies, NFTs, and the future of digital finance.
Check Fleming out on: