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What You Must Know Before Your First Investigation

Since the enforcement of Korea’s Virtual Asset User Protection Act, regulatory scrutiny over crypto-related activities has intensified significantly.

As a result, individuals involved in meme coins, altcoins, and DeFi projects—often in limited roles—are increasingly being called in for investigation.

A key trend is that even those who did not lead or design a project, but only handled SNS marketing, community management, or translation, are sometimes booked as accomplices.
 

What Conduct Is Considered Illegal?

The Act broadly regulates unfair trading practices in virtual assets. In practice, the following types of conduct frequently become legal issues:

• Market Manipulation: Artificial trading volume, bot-driven buy/sell activity
• False or Misleading Disclosures: Spreading exaggerated or false “positive news” through SNS or communities
• Rug Pull Schemes: Pre-acquiring tokens and selling them after attracting investors
• Engagement Manipulation: Inflating followers or transaction metrics
• Use of Insider Information: Trading based on non-public listing or project information

In many cases, multiple charges—such as fraud, unfair trade practices, and insider trading—are applied together.
 

“I Only Did Marketing—Why Am I Being Treated as an Accomplice?”

This is one of the most common questions in crypto investigations.

Even if you did not understand the full structure of the project or earned minimal compensation, authorities may still view your actions as part of a broader scheme to induce investment.

Activities such as managing SNS accounts, posting promotional content, or maintaining community engagement can be interpreted as contributing to the overall transaction structure.

The key legal issue is intent (knowledge and awareness):

• Did you recognize the illegality of the conduct?
• Were you aware that the project structure was deceptive or unsustainable?
• Did you understand how tokens were distributed and monetized?

Your level of awareness can significantly affect how your involvement is legally assessed.
 

Situations That Require Immediate Legal Review

You should seek legal advice promptly if any of the following apply:

• You joined a crypto project through personal connections and handled SNS, marketing, or translation
• You posted promotional or investor-attracting content on official channels
• You received tokens or cash as compensation
• You cut off contact after fraud allegations surfaced or have already been contacted by investigators

Even one of these factors may expose you to legal risk under Korean law.
 

If an Arrest Warrant Is Filed

Crypto-related cases rely heavily on digital evidence, including blockchain transaction records, SNS activity logs, and mobile forensic data.

When a warrant is reviewed, courts consider:

• Risk of evidence destruction
• Risk of flight
• Seriousness of the alleged offense
• Your specific role and level of involvement

The time between a warrant request and the court hearing is extremely short. During this window, it is critical to clearly organize and present your actual level of involvement and lack of intent.
 

Why Crypto Cases Require Specialized Legal Counsel

Crypto investigations involve both legal and technical complexity.

Without a clear understanding of blockchain transactions, token distribution mechanisms, and smart contract structures, even the factual analysis of a case can be flawed.

At Decent Law Firm, our digital asset team provides end-to-end representation, including:

• Early-stage investigation response and strategy
• Police and prosecutor interview preparation
• Arrest warrant hearing defense
• Full trial representation

Our approach goes beyond simple denial. We focus on demonstrating the absence of intent and clarifying the actual scope of involvement through structured legal defense.

If you or someone close to you is under investigation, early legal intervention is essential.

In crypto-related cases, the outcome is often shaped at the very beginning.