Legal Protection for Victims of Fraud Disguised as Illegal Investment (A Study of Supreme Court Decision Number 4202 K/Pid.Sus/2023)

Abstract

The advancement of digital technology has spawned various technology-based investment instruments that offer convenience and high returns to the public. However, this development has also been exploited by criminals to conduct illegal investment schemes—a prime example being the Viral Blast Global trading robot case. This case resulted in massive financial losses for investors, as it employed a public fund-gathering scheme not backed by genuine trading activities. This study aims to analyze the legal policy regarding fraud disguised as illegal investment, legal protection for victims, and legal liability concerning victims, as addressed in Supreme Court Decision Number 4202 K/Pid.Sus/2023. The research employs a normative legal research method utilizing both statutory and case-based approaches. The legal materials utilized include Article 378 of the Criminal Code (KUHP) regarding general fraud, Law Number 1 of 2024 concerning Fraudulent Acts involving Electronic Information and Transactions (ITE Law), Law Number 7 of 2014 concerning Trade (specifically regarding Ponzi schemes), and Supreme Court Decision Number 4202 K/Pid.Sus/2023. Research findings indicate that the legal policy regarding illegal investments employs both penal and non-penal approaches, involving the imposition of criminal sanctions on perpetrators and the strengthening of oversight over digital investment activities. Legal protection for victims is realized through law enforcement processes, the seizure of assets derived from the crime, and mechanisms for victim restitution. In Judgment Number 4202 K/Pid.Sus/2023, the Supreme Court upheld the criminal convictions of the perpetrators and ordered the forfeiture of assets derived from the crime for restitution to victims via legally prescribed mechanisms. The ruling reflects the state's efforts to provide legal certainty, justice, and protection for the public against digital technology-based illegal investment practices. In conclusion, handling this case requires mastery of digital investigation techniques, including metadata analysis and digital forensics. This research contributes to the development of criminal law studies and offers practical recommendations for strengthening regulations and law enforcement capacity in Indonesia.