Delio CEO claims never to have promised to guarantee users' principal, rebutted by creditors

ChainCatcher news, according to Cointelegraph, former CEO of the Delio platform, Jung Sang-ho, admitted in court that users did not receive "principal protection" when transferring assets to the platform. He stated, "I never promised to guarantee the principal. This is clearly stated in the terms and conditions, and the FIU (Financial Intelligence Unit of Korea) required us to inform investors through the website."

However, creditors immediately rebutted, "Why are deposits and pledges considered investments?" The prosecution also claimed that principal protection is a duty of care owed to clients.

Meanwhile, Jung's legal team argued that the prosecution and creditors' statements are "factually incorrect," asserting that the assets provided by the platform had no collateral, and that its operational handling "only accounted for 5% of its assets" after the FTX bankruptcy.

It is reported that the platform collapsed last year, owing creditors approximately 250 billion won (about 181 million USD). The prosecution has charged it with fraud, embezzlement, and breach of trust, among other offenses. The next hearing for Jung is scheduled for July 23.