20-Year Prison Term Demanded for Delio CEO: FTX Scandal

South Korean prosecutors have demanded a 20-year prison sentence for Delio's CEO, Jeong Sang-ho, the operator of the crypto asset investment platform. Delio had caused shockwaves in the industry when it suddenly halted customer withdrawals in June 2023. In their closing arguments at the Seoul Southern District Court, prosecutors alleged that Jeong violated the Act on the Punishment of Specific Economic Crimes. This demand elevates the victims' long-awaited quest for justice to its peak. Yonhap news agency reported that the incident is linked to irregularities during Delio's operations.

Details of the 20-Year Prison Demand Against Delio CEO

The chain of events extends to Jeong being indicted in April 2025; this occurred about a year after authorities sought an arrest warrant for the withdrawal halt scandal involving actors like Haru Invest and B&S Holdings. Prosecutors claim that Jeong embezzled approximately 250 billion won (168.8 million dollars) worth of crypto assets from 2,800 victims over the period from August 2021 to June 2023. The defense states that they will compensate the victims if Jeong is acquitted. Victims are insistently calling for a heavy sentence from the court; prosecutors also emphasize Jeong's deceptive behavior, evasion of responsibility, and lack of cooperation in the investigation.

FTX Collapse and Haru Invest Connection

Haru Invest, as examined on our FTT detailed analysis page, had pointed to the source of the chain reaction problems by reporting a 350 billion won loss in the FTX collapse. This event created a domino effect that triggered the Delio scandal. FTX's bankruptcy deepened liquidity crises in the sector, leading to erosion of trust in similar platforms. Haru Invest's losses accelerated Delio's decision to halt withdrawals.

FTT Price and Technical Analysis: Current Situation

The FTX token (FTT) is currently trading at 0.29 USD (+0.48% 24h change). RSI at 49.33 is neutral, but it shows a downtrend and bearish Supertrend signal. EMA 20: 0.2932. Supports: S1 0.2908 (strong, 71% score), S2 0.2638. Resistances: R1 0.3074 (62% score), R2 0.4058. These data paint a risky picture for FTT futures. The scandal's precedent could increase volatility in tokens like FTT. Related coins ID and B should also be monitored.

Transparency in the Crypto Sector and Court Decision

This case is testing transparency and accountability standards in the crypto sector. The prosecutors' tough stance signals stricter oversight of platform managers' handling of customer funds. The court will announce its first-instance decision on July 16, and the ruling could set a precedent for similar cases.