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1. A crypto trading scam — could you be criminally liable?

If you participated in a virtual asset transaction in any capacity—such as acting as an intermediary, recommending an investment, providing an account, or transferring funds—criminal liability may arise depending on whether you recognized or could have recognized that the conduct constituted fraud.

However, where the individual was not the principal planner of the scheme, there are cases in which the person is deemed not a joint principal offender, but rather an accessory, or even acquitted. The outcome depends heavily on how the facts are established and proven.

In crypto-related fraud cases, investigative authorities focus on the circumstances of involvement, foreseeability or awareness of the fraudulent nature, and the substantive role played. How these issues are addressed at an early stage can significantly affect the severity of punishment.
 

2. Common types of crypto trading scams that trigger criminal investigations

Crypto trading scams tend to follow recurring patterns. Law enforcement typically assesses involvement and scope of liability based on the following categories:
 

• Promoting or introducing an “investment coin” followed by failure to pay promised returns

• Soliciting crypto investments through multi-level marketing structures or “signal/leader chat rooms”

• Performing so-called “minor roles,” such as account lending, transferring proceeds, or cash withdrawals

• Involvement in transactions related to overseas exchanges or unlisted tokens

Falling within one of these categories may lead to an investigation. Nevertheless, criminal responsibility is determined through a holistic assessment of awareness, manner of involvement, and the actual substance of the role performed.
 

3. Potential charges and exposure to punishment

Crypto trading fraud cases rarely involve a single offense. Depending on the form and degree of involvement, multiple charges may apply simultaneously, and sentencing exposure can vary widely.
 

• Fraud

Where a person deceives others under the guise of a virtual asset investment and obtains property, fraud may be established. Fraud is punishable by up to 10 years’ imprisonment or a fine of up to KRW 20 million under Article 347(1) of the Korean Criminal Act.
 

• Joint principal offender or accessory

Even without planning the overall scheme, a participant may be punished as a joint principal offender or as an accessory, depending on their role. Where two or more persons jointly commit a crime, each is punished as a principal offender (Article 30). A person who aids another’s crime is punished as an accessory, with a mitigated sentence compared to that of the principal offender (Article 32).
 

• Illegal fund-raising (Violation of the Act on the Regulation of Conducting Fund-Raising Business without Permission)

Receiving funds by promising repayment of the principal or an amount exceeding it in the future constitutes prohibited fund-raising activity. Violations are punishable by up to 5 years’ imprisonment or a fine of up to KRW 50 million.
 

• Concealment of criminal proceeds

Disguising, concealing, or handling proceeds derived from serious crimes such as fraud may constitute a violation of the Act on the Concealment of Criminal Proceeds and Punishment Thereof, punishable by up to 5 years’ imprisonment or a fine of up to KRW 30 million.
 

Statements made at the initial investigation stage often become critical evidence at trial. Careless statements can significantly weaken a defense. That said, even unfavorable initial statements may be countered through fact-specific analysis and evidentiary strategy.
 

A crypto trading scam case is not a mere civil dispute—it may directly result in a criminal record. Even seemingly minor involvement warrants professional legal handling.
 

4. Our approach — early-stage response is decisive

In crypto trading scam cases, our firm focuses on early and strategic intervention, including:
 

• Charge-reduction strategies based on the degree of involvement

• Structuring arguments for minor participants and lack of fraudulent intent

• Denial of joint-offender status or limitation to accessory liability

• Review of settlement possibilities and preparation of mitigation materials for sentencing

If you have already been contacted by law enforcement, requested to appear for questioning, or have a history of account use or fund transfers, immediate legal review is critical.

Attempting to respond alone often worsens the situation. Correcting the course early with experienced counsel is the most realistic solution. We recommend starting with a brief consultation before matters escalate further.