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South Korea Seeks 20 Years for Delio CEO Fraud

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South Korean prosecutors are seeking a 20-year prison sentence for Jeong Sang-ho, CEO of crypto lending platform Delio, over an alleged $169 million fraud. The case involves nearly 2,800 investors who were left unable to access their funds after the platform halted withdrawals. Prosecutors cited Jeong's "active deceptive acts" as a key factor in the severity of the sentence request.

This development underscores the intensifying regulatory crackdown on the crypto industry in South Korea, following the collapse of Terra-Luna and subsequent market turmoil. The Delio case is one of the most high-profile enforcement actions, signaling that authorities are taking a hard line against crypto-related fraud.

The outcome of this trial could set a precedent for future crypto fraud cases in the country, potentially deterring illicit activities but also raising concerns about the regulatory environment for legitimate crypto businesses. The market reaction has been muted, with investors closely watching for the final verdict.

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