The South Korean platform Delio collapsed last year due to counterparty exposure to Haru Invest, another South Korean crypto yield giant.
Jung Sang-ho, CEO of South Korean crypto yield platform Delio, which collapsed last year and owes creditors an estimated 250 billion won ($181 million), has blatantly told investors that their deposits were not “principal protected” when they transferred their assets to the platform.
According to a report by local news agency Etoday Korea, during the second hearing of the first criminal trial held on June 25 at the Seoul Southern District Court, Jung told the audience: “I never promised a guarantee of principal. It was clearly stated in the terms and conditions, and FIU [Korea Financial Intelligence Unit] required us to notify investors of this through our website.”
However, creditors quickly shot back: “Why are deposits and staking considered investments?” The prosecution has also alleged that the principal guarantee is a duty of care to customers.
