delio

The South Korean prosecution has formally requested the court to sentence the former CEO of the cryptocurrency platform Delio, Jeong Sang-ho, to 20 years in prison, accusing him of committing large-scale economic fraud. In the closing statement at the Southern District Court of Seoul, the prosecution cited the local economic crime aggravated punishment law, directly pointing out that the suspect had long deliberately deceived and falsely advertised, causing approximately 2,800 investors' funds to be trapped and difficult to redeem.The prosecution pointed out that the defendant had a clear subjective intent to defraud, the losses involved were enormous, and he subsequently refused to cooperate with the investigation and deliberately shirked responsibility, continuously exacerbating the losses and difficulties faced by the victims. Therefore, they are seeking a strict sentence according to the law.

ChainCatcher news, according to Digital Asset, on August 27, victims of the Delio scam held a rally in front of the National Assembly in Yeongdeungpo District, Seoul, expressing their anger towards organized fraud and calling for the enactment of the Special Act on Organized Fraud. Victim A stated that she entrusted 2.5 BTC to Delio but was unable to retrieve it.At the rally, People Power Party member Jang Bae-sook emphasized that the current judicial system is unable to effectively handle economic crimes, resulting in a large number of victims. She stated that she would push for the passage of the Special Act on Organized Fraud to strengthen penalties for fraudulent activities and provide relief for victims. The event was organized by Jang's office and the Korea National Fraud Prevention Association, attracting many victims and related individuals to participate.

ChainCatcher news, according to Cointelegraph, former CEO of the Delio platform, Jung Sang-ho, admitted in court that users did not receive "principal protection" when transferring assets to the platform. He stated, "I never promised to guarantee the principal. This is clearly stated in the terms and conditions, and the FIU (Financial Intelligence Unit of Korea) required us to inform investors through the website."However, creditors immediately rebutted, "Why are deposits and pledges considered investments?" The prosecution also claimed that principal protection is a duty of care owed to clients.Meanwhile, Jung's legal team argued that the prosecution and creditors' statements are "factually incorrect," asserting that the assets provided by the platform had no collateral, and that its operational handling "only accounted for 5% of its assets" after the FTX bankruptcy.It is reported that the platform collapsed last year, owing creditors approximately 250 billion won (about 181 million USD). The prosecution has charged it with fraud, embezzlement, and breach of trust, among other offenses. The next hearing for Jung is scheduled for July 23.

ChainCatcher news, according to Chosun Biz, South Korean virtual asset management and lending platform Delio has issued a notice to creditors, announcing plans to establish a new company to take over all its debts. Delio intends to sell its existing entities, including a virtual asset service provider (VASP), and use the proceeds from the sale to address its financial obligations.Currently, Delio is facing trial on charges of allegedly stealing approximately 250 billion won (about 180 million USD) in cryptocurrency and suddenly halting cryptocurrency deposits and withdrawals without prior notice. Industry experts have expressed skepticism about the feasibility of Delio's strategy, suggesting that the plan may be aimed at obtaining a lighter sentence in the ongoing trial.

ChainCatcher news, according to Etoday, South Korean virtual asset management and lending platform Delio has announced a plan to fully repay user debts before CEO James Jung's upcoming criminal trial and the platform's bankruptcy hearing. The repayments will be made in four installments: 20%, 20%, 25%, and 35%. However, Delio has not specified the exact timing of these repayments, the amount of funds held, or the source of the repayment funds. It is estimated that Delio owes a total of 247.4 billion won (approximately 179.8 million USD) to about 2,800 creditors.Earlier this January, South Korea issued arrest warrants for key figures in the Delio-Haru Invest withdrawal suspension case.

ChainCatcher news, according to The Block, South Korean prosecutors have issued an arrest warrant for Bang, a key figure in the investigation into the suspension of withdrawals by Delio and Haru Invest. Bang is reportedly a major shareholder of B&S Holdings.It is reported that Delio suspended user withdrawals on June 14, 2023, due to Haru Invest, which it partnered with, suddenly halting deposits and withdrawals. Haru filed a criminal complaint against B&S Holdings, accusing it of deceiving the company by providing false management reports. Bang faces arrest on charges of fraud and breach of contract. After complaints from Delio and Haru's clients, prosecutors prevented related personnel from leaving the country. The Seoul Southern District Court has not yet commented.

ChainCatcher news, according to South Korean media News1, the Financial Intelligence Unit (FIU) of South Korea recently faced its first administrative lawsuit. The lawsuit was filed by the virtual asset business operator Delio, opposing the 1.896 billion won fine imposed by the FIU for violating obligations related to the Specific Financial Information Act. The FIU previously stated that Delio was penalized with a 3-month business suspension and a fine of 1.896 billion won for failing to conduct anti-money laundering (AML) risk assessments before offering new financial products.Delio argues that the 41 types of virtual asset deposit and loan products it offers are not "financial products" in the traditional sense, and therefore should not be subject to the legal provisions. In addition, Delio also contested the additional fine of 180 million won imposed for failing to prevent transactions with unreported virtual asset business operators.

ChainCatcher news, according to Decenter citing informed sources, the Financial Intelligence Unit (FIU) of the Financial Services Commission (FSC) of South Korea has suggested the dismissal of Delio CEO Jung Sang-ho (phonetic) through a sanctions announcement. Previously, the FIU also imposed a three-month business suspension on Delio and fined it 1.896 billion won.Delio is preparing to file an administrative lawsuit regarding this matter. Delio CEO Jung Sang-ho stated, "The sanctions from the financial intelligence agency leave a lot of room for unreasonable legal interpretations and arbitrary applications, and such actions by the financial authorities could stifle the domestic virtual asset industry."

ChainCatcher news, according to Decenter, the Financial Intelligence Unit (FIU) of the South Korean Financial Services Commission has announced sanctions against Delio, including a three-month suspension of all operations, a fine of 1.896 billion won (approximately 1.44 million USD), and the dismissal of an executive.The FIU stated that Delio transferred customers' virtual assets 171 times for unreported foreign virtual asset operators and supported unreported virtual asset operators in storing virtual assets. Additionally, Delio failed to conduct anti-money laundering risk assessments before offering new products and services, violating customer identification obligations.

ChainCatcher news, according to ETtoday, South Korean crypto financial company Delio has disclosed the scale of deposits and estimated losses for the first time after suspending withdrawals for more than two months. The deposit scale on the Delio platform is approximately 90 billion won (about 67.95 million USD), and the current estimated loss rate is between 30-50%.Delio stated that the final loss rate can only be confirmed after completing measures such as the recovery of operating assets and liquidation, so it is currently just an estimate; this figure is not final and may change based on circumstances; if the final loss scale is determined in the future, additional compensation will be prepared based on that.

ChainCatcher news, according to South Korean media hankyung, South Korean crypto financial company Delio will stop web hosting services after August 11. If the service is interrupted, it will render all customer services and the company's operational management system unusable.Delio stated that, according to the preservation decision of the bankruptcy court, the use of various expenses must be approved by the court in advance, and they have applied to the bankruptcy court for permission to use funds for web hosting, labor costs, and other necessary expenses required for company operations, but approval has not yet been granted.

ChainCatcher news, according to an official announcement, South Korean crypto financial company Delio announced that it will suspend some services and stop paying users interest on virtual assets starting July 24. Delio explained that during the seizure search on July 18, all assets owned by customers and the company, as well as other cold wallets, ledgers, etc., were confiscated by the prosecution. (Source link)

ChainCatcher news, according to Digital Asset, South Korean crypto financial company Delio transferred all of its virtual assets worth 9.2 billion won (approximately 7.07 million USD) before halting deposits and withdrawals on June 14. The background and purpose of Delio's transfer of all virtual assets before stopping deposits and withdrawals can only be confirmed through a compulsory investigation by the prosecution.A representative of Delio stated after the withdrawal halt that rumors in the community regarding "customer virtual asset withdrawals, financial fraud, and cashing out using employees' personal names" are untrue. (Source link)

ChainCatcher news, the South Korean Financial Services Commission is conducting a comprehensive investigation into the allegations of fraud, embezzlement, and breach of trust against the South Korean crypto financial company Delio, which suspended deposits and withdrawals on June 14.Currently, the Financial Intelligence Unit (FIU) of the Financial Services Commission has obtained Delio's virtual asset operations and financial data. (Source link)

ChainCatcher news, according to a report by the Chosun Ilbo citing informed sources, creditors of the South Korean crypto financial company Delio have applied for corporate bankruptcy reorganization procedures (original court takeover procedures) to the Seoul Bankruptcy Court through the law firm LKB & Partners, which is currently filing a class action lawsuit against Haru Invest and Delio.Previous news, Delio announced on June 14 that it had suspended withdrawals, stating that this move was due to increased market volatility after Haru Invest suspended deposits and withdrawals, and later announced on June 28 that it would resume deposit and withdrawal services for ADA, SOL, XTZ, DOT, KSM, and NEAR tokens. (Source link)

ChainCatcher news, according to Digital Asset, regarding the lawsuit against the South Korean virtual asset management company "Chain Suspension of Withdrawals," the country's prosecutors have banned key executives of B&S Holdings, Delio, and Haru Invest from leaving the country, including B&S Holdings major shareholder bang certain, Delio CEO Chung Sang-ho and other executives of the company, as well as executives of Haru Invest. It is reported that Delio is also under investigation by the country's financial authorities for suspected violations of trust and embezzlement.Previous news, Haru Invest suspended deposit and withdrawal requests after issues with B&S Holdings, stating that B&S Holdings provided management reports containing false information, and subsequently, Delio announced the suspension of withdrawals citing the impact of Haru Invest. (Source link)

ChainCatcher news, the crypto finance company Delio announced that it will gradually resume withdrawals, but did not disclose specific repayment deadlines, methods, or the amount of losses.Delio CEO Jeong Sang-ho stated at an investor briefing today: "Currently, Delio is in an unstable state because it relies on the situation of Haru Investment and B&S. I understand that Haru Invest is undergoing bankruptcy proceedings. We will ensure compensation capital as much as possible, such as third-party paid-in capital increases." (source link)

ChainCatcher news, according to Asiae, South Korean cryptocurrency asset management company Haru Invest and cryptocurrency investment platform Delio are facing a class action lawsuit initiated by investors through LKB Law Firm due to the suspension of withdrawals. About 410 investors from Haru Invest and 120 investors from Delio have gathered in a KakaoTalk group, preparing to advance the legal proceedings.Previous reports indicated that after Haru Invest suddenly suspended deposit and withdrawal services, Delio also followed suit by halting withdrawals. Delio stated that this action was due to increased market volatility following Haru Invest's suspension of deposits and withdrawals, and emphasized that it does not rely on external platforms to manage assets and is not involved in embezzlement or misappropriation of funds. It has been reported that South Korea's financial intelligence agency is cooperating with law enforcement to investigate Delio. (Source link)

ChainCatcher news, South Korean cryptocurrency financial company Delio announced that it will hold an investor briefing in Seoul on June 17th in the morning. Delio stated that the purpose of this investor briefing is to apologize for the current situation, explain the FUD, and address the issues. Delio will also report the current situation to investors and discuss a feasible investment recovery plan.Delio stated that only actual customers using Delio's services can participate in the meeting, and they need to sign a declaration (stating that they will not use physical or verbal violence) before the meeting starts. (Source link)