This case involved fraud allegations arising from a virtual asset investment solicitation, where delayed payments led to claims that the suspects had induced investments without genuine repayment intent or capability. Cha & Kwon Law Offices closely tracked the investigation, in which the authorities focused on whether the project had legitimate business substance and whether the promised structure was realistically executable at the time the funds were received.

Cha & Kwon Law Offices developed a defense strategy grounded in objective evidence rather than relying solely on subjective assertions of repayment intent. Key materials included documentation demonstrating consistency between the project’s whitepaper and actual business execution, technical implementation and real-world use cases, and operational and transaction-related data supporting the existence of an identifiable business model. The defense further emphasized that payment delays alone do not establish fraudulent intent, and that there was no intent to unlawfully acquire funds from the outset.

As a result, the authorities found it difficult to establish the requisite intent for fraud and issued a no-charge decision (non-prosecution). This case highlights that proving business substance and real-world implementation can be critical defense factors in virtual asset-related fraud investigations.