Delio CEO Shocks Court — “We Never Guaranteed Your Crypto Deposits… | EVM News

LUCKNOW (CoinChapter.com) — Jung Sang-ho, the CEO of a failed cryptocurrency platform, Delio, dropped a bombshell on his former customers. During his second court trial in Seoul, Jung boldly stated, “I never promised to guarantee the principal.”

This statement, made at the Seoul Southern District Court on June 25, ignited an immediate uproar among creditors present at the trial. The courtroom erupted with angry voices as investors challenged Jung’s claim. They fired back with pointed questions: “Why is a deposit considered an investment,” challenging the very foundation of Delio’s business model. The tension in the courtroom was palpable, with some accusing Jeong of outright lying.

What Exactly Had Happened?

Jung’s words contradict what many believed about Delio. Just two years ago, the company proudly announced it was the first in Korea to get official approval for crypto lending. It boasted about bank-level security and promised safe, reliable services.

But last June, everything fell apart. First, Delio’s sister company, Haru Invest, suddenly stopped all withdrawals. Delio quickly followed suit, leaving customers unable to access their funds. Since then, it’s been a nightmare for investors trying to get their money back.

Prosecutors aren’t buying Jung’s story. They claim Delio and Haru Invest were playing fast and loose with customer funds, using them for risky investments instead of keeping them safe. They’ve accused the companies of lying to customers about how they managed money.

Jung’s lawyers are fighting back, saying only a small part of Delio’s assets were affected when another big crypto company, FTX, collapsed. But for investors who can’t access their savings, these arguments offer little comfort.

Jung also defended his position, arguing that Delio had always been transparent about the risks. He pointed out that the company’s terms and conditions clearly stated the nature of the investments and that they had complied with all regulatory requirements set by the Korea Financial Intelligence Unit (FIU).

“Since receiving our virtual asset business operator license in 2021, we’ve reported our status quarterly and operated under FIU supervision,” Jeong explained.

Investors Left in Limbo

The drama didn’t end with the formal proceedings. A heated 20-minute confrontation erupted between Jung and creditors after the trial. One investor claimed to have evidence of inquiring about principal guarantees just months before joining Delio, directly contradicting Jeong’s courtroom statements.

Jung’s legal team didn’t stop at denying the principal guarantee accusations. They challenged various aspects of the prosecution’s case, including allegations of unsecured lending and mismanagement of customer assets. The defense also questioned the legality of evidence collection, particularly regarding server data seized from Gavia Co., Ltd.

The prosecution stood firm, insisting on the legality of their evidence collection process. However, they admitted to potential oversights in offering participation rights to Jeong and his lawyer during the search and seizure operations.

Jung’s next trial is set for July 23. The court has ordered the prosecution to provide a detailed rebuttal, including evidence lists and justification for their investigative methods.