Prosecutors in South Korea have requested a 20-year prison term for Jeong Sang-ho, CEO of Delio, a local crypto asset deposit service that abruptly halted customer withdrawals in June 2023.

The sentencing request was presented during closing arguments at the Seoul Southern District Court on Thursday, where prosecutors charged Jeong with violating the Act on Aggravated Punishment of Specific Economic Crimes, Yonhap News Agency reported.

Jeong was indicted in April 2025, nearly a year after South Korean authorities sought an arrest warrant for a suspect surnamed Bang, a key figure in the suspension of withdrawals involving Delio and investment firm Haru Invest. Bang holds a majority stake in B&S Holdings, which Haru identified as a source of disruption in the chain of halted services, claiming it had lost 350 billion won ($236 million) in the FTX collapse.

Prosecutors alleged that Jeong's actions during Delio's operations resulted in the embezzlement of approximately 250 billion won ($168.8 million) in crypto assets from about 2,800 victims over two years, from August 2021 to June 2023, according to the report.

Prosecutors also said that the defendant engaged in deceptive conduct and false promotion, adding that he had exacerbated victims' losses by avoiding responsibility and maintaining an "uncooperative attitude" throughout the proceedings.

While the defense has expressed a willingness to address customer losses if Jeong is acquitted, those impacted by the freeze have urged the court to impose a "severe" punishment, according to Yonhap. 

The court is scheduled to deliver its first-instance ruling on July 16.