If I trade virtual assets on someone's behalf and a loss occurs, does legal liability arise?

Even if a loss occurs while trading virtual assets on someone's behalf, criminal liability such as fraud may be at issue depending on the conditions at the time of receiving the funds.

If you guaranteed certain profits or explained that no losses would occur while trading virtual assets on behalf of someone and then received funds, the investor is judged to have entrusted the money trusting that explanation.

If a loss subsequently occurs and the investment cannot be returned, this is considered a deceptive act at the time of receiving the funds, and you can be sentenced to up to 20 years of imprisonment or a fine of up to 50 million won for fraud under the Criminal Act.

On the other hand, if it was a structure where funds were entrusted on the premise of the possibility of loss, it may not lead to criminal punishment, but separate civil disputes over whether to return the investment may arise.

Ultimately, the criterion for judgment is not the result, but what conditions and explanations existed at the time of receiving the money.

In such situations, it is necessary to organize in the following steps.

① Organize the agreement contents at the time of receiving the funds

You need to first organize what conditions you actually received the money under, based on whether profits were guaranteed, whether there was a principal return agreement, and whether losses were notified.

② Secure evidence materials

You must secure materials that can confirm the fund flow and agreement, such as KakaoTalk conversations, account transfer details, and profit distribution promises.

③ Determine criminal risk

You need to review the possibility of fraud being established depending on whether profit guarantees or deceptive elements are included.

④ Set response direction according to dispute type

You need to set the response direction by distinguishing whether there is a possibility of leading to a criminal issue or whether it will become a civil return dispute.

In conclusion, rather than the virtual asset trading loss itself, the agreement structure at the time of receiving the funds is the core issue, and since criminal liability is determined based on this part, you can wisely respond by organizing the facts through legal review.