Flood of Petitions Urging Severe Punishment for Delio CEO... 2-3 Cases Received Daily

Jung Sang-ho and Creditors' Association 'Trust Collapse'
Conflicting Bankruptcy Filings and Dismissals by Creditors

Petitions demanding severe punishment for Jeong Sang-ho, CEO of Delio, a cryptocurrency deposit service operator accused of deceiving investors and receiving coins worth about 240 billion won before halting deposits and withdrawals, are pouring in.

According to the legal community on the 27th, between the 12th and 26th of this month, 41 victim petitions were submitted to the Seoul Southern District Court and 37 to the Seoul Bankruptcy Court. This amounts to an average of 2 to 3 petitions received daily. Since early this month, among the victims, controversy has arisen that Delio secretly amended its service terms to avoid responsibility for deposit losses, and that former creditor representative Mr. A submitted a confirmation letter opposing CEO Jeong’s detention to the court without the consent of the entire creditor group for the company’s rehabilitation.

In response, some creditors expressed a loss of trust in CEO Jeong and the creditor association, urging strict punishment and bankruptcy. Victim B stated, “A recording was revealed in which CEO Jeong said to Mr. A that writing the confirmation letter would help him avoid detention. Suspicions grew that Mr. A made an agreement behind the creditors’ backs without their consent, and considering allegations of terms manipulation, a wave of petitions demanding severe punishment for CEO Jeong has emerged.”

However, opinions among the creditors are divided over whether the company should declare bankruptcy. Victim C, who argues against bankruptcy dismissal, said, “The issue of not notifying about the terms change is CEO Jeong’s problem, and the company’s bankruptcy issue is separate. Since they haven’t even tried to see whether repayment is possible, after dismissal, we want to observe whether the promised first repayment of 20% within two months is fulfilled.”

On the other hand, victim D, who filed for bankruptcy, said, “I believe the submission of a confirmation letter stating that the creditor group does not want CEO Jeong’s detention, which was prepared without the consent of the entire creditor group, played a major role in CEO Jeong’s release. There is no trust left in the creditor association. CEO Jeong has not disclosed any remaining assets to me, and realistically, the company’s debts exceed its assets, so repayment from the company cannot be expected.”

Attorney Lee Geun-hwan of the law firm Dambak explained, “Conflicts continue between the creditors who filed for bankruptcy and other creditors. However, since all creditors share the common goal of recovering the principal, the position of the remaining creditors who have not yet clearly stated their stance on bankruptcy is important.”

This content was produced with the assistance of AI translation services.