However, the Court said that this argument would not help the accused at the quashing stage.
It said the prosecution was not based on mere promotion or trading of cryptocurrency. Rather, the allegation was that cryptocurrency was used as an instrument to deceive investors and collect money, the Bench said.
“Even a legally permissible business activity may attract criminal liability, if it is employed as a cloak for fraudulent conduct,” the Court observed.
The Court also said economic offences must be viewed seriously because they corrode public confidence in financial systems.
It added that whether the accused were only agents or active conspirators was a disputed question of fact. Such questions would require examination of financial transactions, electronic records, witnesses and surrounding circumstances during trial, the Bench said.
