Can you be subject to punishment if the white paper content and actual operation differ in a virtual asset project?

If the content of the white paper and the actual operation method differ in a virtual asset project, depending on the explanation method during the investment attraction process, it may lead to criminal punishment such as fraud.

The white paper is not a legally mandatory disclosure document, but it is used as the most decisive indicator for investors to decide on investment.

If the content stated in the white paper is false, or if investment funds were raised while intentionally omitting important facts, this clearly constitutes deceptive conduct.

In this case, it constitutes fraud under criminal law and may result in imprisonment of up to 20 years or a fine of up to 50 million won, and if the amount obtained by deception is large, aggravated punishment may even be imposed, so caution is required.

Under the recently enforced "Act on the Protection of Virtual Asset Users, etc.," if combined with unfair trading practices such as market price manipulation different from the white paper or use of undisclosed information, separately from criminal punishment, a penalty surcharge of twice the unjust gains may be imposed.

Even when calculating the gain amount is difficult, a penalty surcharge of up to 4 billion won may arise, so the legal risk is very large.

Of course, plan changes or technology development delays may occur, but if the information at the time of investment attraction was true, it is often difficult to be punished merely for falling short of goals.

Ultimately, the standard for legal judgment depends on whether the information at the time of investment was false, or whether there was an intent to deceive others.

In conclusion, the difference between the virtual asset white paper and actual operation must be carefully reviewed for its cause, and it is most important for virtual asset business operators to secure legal truthfulness from the planning stage.