[Criminal Matters] Acquitted in Criminal Complaint Case Due to Project Failure After ICO

Law firm Veat defended A, the representative of the cryptocurrency exchange developer, securing an acquittal based on the lack of evidence of violation of the Act on Restrictions of Fraudulent Transactions and Related Transactions.

• Case Overview

Representative A was involved in an ICO to develop and launch a cryptocurrency exchange capable of implementing various investment strategies around 2019. After the exchange was launched, the price of the ICO tokens fell due to a downturn in the cryptocurrency market, and some ICO participants filed a criminal complaint against Representative A for violation of the Act on Restrictions of Fraudulent Transactions and Related Transactions.

• Veat’s Assistance

Law firm Veat actively demonstrated that Representative A had fully implemented all plans disclosed during the ICO process, that all funds obtained through the ICO were used for the development and operation of the cryptocurrency exchange, and that significant efforts were made to meet the expectations of the ICO participants.

• Investigation Agency’s Disposition

As a result, the relevant investigative agency determined that there was no evidence of violation of the Act on Restrictions of Fraudulent Transactions and Related Transactions against Representative A and issued a decision to drop the case and a dismissal of charges.

Law firm Veat, based on its professional understanding of virtual currency and blockchain, was able to conduct efficient communication and provide appropriate responses from the police investigation stage, ultimately contributing to the swift and safe resolution of the case.

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