LUCKNOW (CoinChapter.com) — Jung Sang-ho, the CEO of a failed cryptocurrency platform, Delio, dropped a bombshell on his former prospects. Throughout his second courtroom trial in Seoul, Jung boldly acknowledged, “I never promised to guarantee the principal.”
This assertion, made on the Seoul Southern District Courtroom on June 25, ignited an instantaneous uproar amongst collectors current on the trial. The courtroom erupted with indignant voices as buyers challenged Jung’s declare. They fired again with pointed questions: “Why is a deposit considered an investment,” difficult the very basis of Delio’s enterprise mannequin. The strain within the courtroom was palpable, with some accusing Jeong of outright mendacity.
What Precisely Had Occurred?
Jung’s phrases contradict what many believed about Delio. Simply two years in the past, the corporate proudly introduced it was the primary in Korea to get official approval for crypto lending. It boasted about bank-level safety and promised protected, dependable companies.
However final June, all the pieces fell aside. First, Delio’s sister firm, Haru Make investments, immediately stopped all withdrawals. Delio shortly adopted swimsuit, leaving prospects unable to entry their funds. Since then, it’s been a nightmare for buyers making an attempt to get their a refund.
Prosecutors aren’t shopping for Jung’s story. They declare Delio and Haru Make investments have been enjoying quick and free with buyer funds, utilizing them for dangerous investments as an alternative of preserving them protected. They’ve accused the businesses of mendacity to prospects about how they managed cash.
Jung’s attorneys are preventing again, saying solely a small a part of Delio’s belongings have been affected when one other massive crypto firm, FTX, collapsed. However for buyers who can’t entry their financial savings, these arguments supply little consolation.
Jung additionally defended his place, arguing that Delio had at all times been clear concerning the dangers. He identified that the corporate’s phrases and circumstances clearly acknowledged the character of the investments and that that they had complied with all regulatory necessities set by the Korea Monetary 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 defined.
Traders Left in Limbo
The drama didn’t finish with the formal proceedings. A heated 20-minute confrontation erupted between Jung and collectors after the trial. One investor claimed to have proof of inquiring about principal ensures simply months earlier than becoming a member of Delio, straight contradicting Jeong’s courtroom statements.
Jung’s authorized group didn’t cease at denying the principal assure accusations. They challenged numerous features of the prosecution’s case, together with allegations of unsecured lending and mismanagement of buyer belongings. The protection additionally questioned the legality of proof assortment, significantly relating to server information seized from Gavia Co., Ltd.
The prosecution stood agency, insisting on the legality of their proof assortment course of. Nonetheless, they admitted to potential oversights in providing participation rights to Jeong and his lawyer in the course of the search and seizure operations.
Jung’s subsequent trial is ready for July 23. The courtroom has ordered the prosecution to offer an in depth rebuttal, together with proof lists and justification for his or her investigative strategies.