Civil and Criminal Boundaries in Virtual Money Investment Disputes

In recent years, with the rapid development of the Virtual Money market, related investment disputes have also been increasing. Clarifying the boundaries between civil and criminal issues in such disputes has become particularly important. This article will explore the legal identification issues in Virtual Money investment disputes through a specific case.

1. Case Overview

Between May and June 2022, a person named Ye claimed to have investment projects and promised high returns, luring many individuals to invest a total of 2.5 million yuan, including 500,000 yuan equivalent in USDT. However, Ye used most of the funds for personal consumption and debt repayment. Ultimately, unable to fulfill the promises, the victims reported the case.

After the court hearing, it was determined that Ye committed fraud, and he was sentenced to 11 years in prison in the first trial. After the appeal, the second-instance court upheld the original judgment.

2. Identification Standards for Civil Disputes and Criminal Fraud

The key distinction between civil disputes and criminal fraud lies in whether the perpetrator has the subjective intention of illegal possession and whether they have objectively carried out fraudulent acts. In this case, the court's main basis for determining that Ye certain constitutes the crime of fraud includes:

1. Use the investment funds to pay off personal debts.
2. Some funds are used for lending to others and investing in Virtual Money.
3. Quickly purchase luxury cars after receiving the investment funds.
4. Liabilities at the time of collection and no fixed assets
5. Personal income is obviously insufficient.
6. Create false transfer records to deceive investors

These factors combined are sufficient to prove that Ye has the intent and actions of fraud.

3. Legal Identification of Virtual Money as a Target of Fraud

In this case, the court acknowledged that virtual money can be the object of fraud crimes. Although the defense lawyer questioned the inability to prove that the defendant received USDT worth 500,000 yuan, the court established this fact based on chat records and the defendant's confession.

The court believes that virtual money has the possibility of management, the possibility of transfer, and value, and can become the object of fraud crimes. This determination is of great significance for the trial of cases related to virtual money.

4. Practical Judgment: Investment Losses Are Not Equivalent to Fraud

In virtual money investment disputes, not all actions that lead to losses constitute fraud crimes. In judicial practice, several key factors are usually taken into account:

1. Does the actor have the intent to illegally possess?
2. Is there any act of fabricating facts or concealing the truth?
3. Did the victim dispose of the property based on a misunderstanding?
4. Is the flow and use of funds real and legal?

The comprehensive consideration of these factors helps to distinguish normal investment risks from criminal fraud.

V. Conclusion

The investment field of Virtual Money is fraught with both opportunities and risks, and related disputes show a complex trend of intertwining civil and criminal issues. For investors, it is essential to raise risk awareness and make prudent decisions; when facing losses, one should also rationally assess the path for safeguarding their rights.

Judicial authorities, when handling such cases, need to strictly grasp legal standards and seek a balance between protecting the rights and interests of investors and promoting the healthy development of the industry. Only by moving forward within regulations can we truly achieve a dynamic balance between technological development and legal protection.