CoinVoice recently learned that according to Cointelegraph, Jung Sang-ho, the former CEO of the Delio platform, admitted in court that users did not get "principal protection" when transferring assets to the platform. He said: "I never promised to guarantee the principal. This is clearly stipulated in the terms and conditions, and the FIU (Korea Financial Intelligence Service) requires us to inform investors through the website."
However, the creditors immediately retorted: "Why are deposits and pledges considered investments?" The prosecution also alleged that principal protection is a duty of care to customers.
Meanwhile, Jung’s legal team argued that the claims by prosecutors and creditors were “factually incorrect,” that the assets offered by the platform were not collateralized, and that its operations handled “only 5% of its assets” following FTX’s bankruptcy.
The platform collapsed last year and owed creditors about 250 billion won (about 181 million U.S. dollars). Prosecutors accused him of fraud, embezzlement and breach of trust. The next hearing for Jung is scheduled for July 23. [Original link]