The chief executive of crypto deposit-and-interest service provider Delio, who was brought to trial on allegations of diverting customers' virtual assets, was sentenced to 15 years in prison at first instance.

On Wednesday, the 11th Criminal Division of the Seoul Southern District Court, chaired by Presiding Judge Jang Chan, sentenced the chief executive, surnamed Jung, to 15 years in prison on charges including fraud under the Act on the Aggravated Punishment of Specific Economic Crimes.

The court said the defendant committed crimes to swindle large sums from many victims and that his culpability was very serious. It added he had not been forgiven by victims who suffered severe economic losses, and that they were petitioning for strict punishment.

It said it considered in sentencing that the case was triggered in part by external factors and that the defendant had no prior punishment record beyond fines.

Delio ran a business that returned high-rate interest in virtual assets when investors deposited coins for a certain period, but abruptly halted withdrawals on June 14, 2023, causing turmoil in the market.

In connection with the case, Jung was indicted without detention in April 2024 on allegations of diverting about 250 billion won in virtual assets from about 2,800 victims over about two years from August 2021 to June 2023.

However, after prosecutors made their first sentencing request, Jung's side raised issues with the evidence-gathering process, saying the defendant's right to participate was not guaranteed during a search and seizure at the server contractor, GabiA. Prosecutors then reduced the alleged scale of losses in part and added preliminary charges.

On Wednesday, the court found him guilty only of allegations in the preliminary charges that he swindled a total of about 70 billion won from about 1,100 victims.

[Yonhap News Agency]