Delio CEO says he never promised to protect user deposit principal, but creditors refute

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