The Defendants’ appeal is dismissed.

1. Summary of grounds for appeal;

A. Defendant A 1) misunderstanding the facts or misapprehending the legal principles (as to the violation of the Financial Investment Services and Capital Markets Act), Defendant A’s products offered on the website operated by Defendant A do not constitute derivatives in the market, and Defendant A established an unauthorized financial investment instrument market.

Therefore, the court below found Defendant A guilty on the violation of the Financial Investment Services and Capital Markets Act by deeming that Defendant A established and operated an unauthorized financial investment instrument market. In so doing, the court below erred by misunderstanding of facts or misunderstanding of legal principles.

2) The lower court’s punishment against Defendant A who was unfair in sentencing (one year and six months of imprisonment) is too unreasonable.

B. The lower court’s sentence against Defendant H against Defendant H (4 million won) is too unreasonable.

2. Judgment on Defendant A’s misunderstanding of facts or misapprehension of legal principles

A. The summary of this part of the facts charged [Presumption Facts] Defendant A: (a) opened a private futures trading site through P using the fact that a certain amount of deposit is required in order to carry out futures trading, which is derivatives within the head of an Exchange; (b) opened a private futures trading site by using the fact that it is difficult to carry out futures trading unless there is a deposit; (c) recruited personal information DB while managing its employees through Q, recruited persons who want to use the said site as its members; and (d) allowed them to carry out virtual futures trading in connection with the exchange program 200 index; and (c) from members, Defendant A was willing to operate the said site by acquiring fees calculated at a certain ratio of investment money and losses of its members

Accordingly, Defendant A, around September 2016, established a management team office in charge of the management of entry and exit of the members under 305 of the Guro-si Building 305, a call center office in charge of the membership recruitment work under 301 of the Yeongdeungpo-gu Seoul Metropolitan Government S building, two teams offices of the call center under 302 of the building in Yeongdeungpo-gu Seoul Metropolitan Government around January 2018, and the call center staff (TM) are personal information DB.