- Prosecutors recommend 20 years’ jail for losses of $250 billion to 2800 Delio users.
- Case ties Delio shutdown to Haru Invest hack and $ 350 billion in FTX losses.
- Shinhan Card is developing stablecoin payments through collaboration with Solana on its blockchain platform.
A case filed against Delio, a cryptocurrency asset deposit service based in South Korea, has entered a crucial phase. During his closing remarks at the Seoul Southern District Court, the prosecutor is seeking a 20-year sentence.
This relates to the sudden halt of withdrawals by the crypto asset deposit service Delio in June 2023, which left thousands of users stranded. Authorities allege that the platform’s operations involved large-scale financial misconduct over a two-year period.
Delio CEO Prison Term Case Moves Toward Verdict
According to local reporting, the request for the Delio CEO’s prison term was presented on Thursday, as prosecutors concluded their arguments against Jeong. The charges were filed under the Act on Aggravated Punishment of Specific Economic Crimes, reflecting the scale of alleged financial violations linked to the platform.
Prosecutors stated that Jeong embezzled approximately 250 billion won, equivalent to about $168.8 million, from nearly 2,800 users.
Jeong was charged in April 2025, after initial investigative measures, including the issuance of an arrest warrant for a person named Bang. Bang has been identified as being “linked to disturbances at Delio and Haru Invest”. According to Haru Invest, Bang is the majority shareholder of B&S Holdings, an entity that has interfered with its operations.
Haru Invest had reported losses worth 350 billion won ($236 million) due to the FTX bankruptcy. These were linked to a series of events that led to the halt of services across various platforms.
Accusations Include Behavior and Monetary Losses
Financial losses are not the only allegations in the Delio CEO prison term case. The prosecution claimed Jeong engaged in misleading and promotional activities. The prosecution said this obscured the company’s financial situation and contributed to the size of the losses sustained by users.
Jeong also failed to cooperate during the prosecution, authorities said. The prosecution claimed his attitude showed he was not committed to resolving the issues faced by impacted users. The victims have called for a “heavy sentence” to be handed down, given the losses and the impact on victims. They further stated that this conduct exacerbated the situation for victims.
The defense has indicated that it is prepared to address customer losses under certain conditions. Legal representatives stated that restitution could be considered if Jeong is acquitted. This position was presented during the proceedings as part of the defense’s response to the allegations.
Meanwhile, individuals impacted by the withdrawal suspension have called for a strict penalty. The victims have requested a harsh punishment from the court, given the extent of the damage and the length of time the scam lasted.
Taking Stablecoin Payments to the Next Level With Shinhan Card
Apart from the Delio CEO’s jail sentence, another experiment in Korea is also underway involving blockchain payment systems. Specifically, Shinhan Card, the largest credit card company in the country, recently signed an MOU with the Solana Foundation to conduct an advanced proof-of-concept test for stablecoin payments.
According to Shinhan Card, the partnership will involve research into creating an integrated financial system that combines the features of traditional finance and decentralized finance. The company indicated that this approach will assess how blockchain infrastructure can integrate with existing payment systems.
Broader Testing of Blockchain Infrastructure
The earlier proof-of-concept conducted by Shinhan Card covered six operational areas related to blockchain payments. These included peer-to-peer transfers, integrated digital asset payment systems, and stablecoin-based hybrid products combining features of checks and credit services.
Additional areas of testing involved stablecoin-based cross-border remittances and settlement processes, as well as IC chip-based card payment services linked to crypto wallets. The company reported that the pilot results could inform future development of its payment infrastructure.
The ongoing collaboration will also evaluate blockchain oracles, which enable communication between off-chain data and on-chain systems. Shinhan Card said that this element is needed to support practical applications of blockchain in financial services.
The other area of focus is the stability of smart contracts. These are contracts that self-execute transactions when certain conditions are met and are used to enable intermediary-free transactions.
According to the company, findings from the initial pilot may serve as a reference for bridging existing fiat-based systems with digital asset infrastructure. Shinhan Card stated that this process could support new approaches to payment and settlement operations.
Shinhan Card currently holds a 16.9% share of South Korea’s credit card market, placing it second behind Samsung Card, which recently recorded a 17.02% share.
