Lost friend's money trading.

Hello, My friend (known each other for 20 years) gave me 12 lakhs in 2022 over a period of 8 months to trade in market. He did bank transfer NEFT of the amount. In 2022 during Russia Ukraine war I suffered big losses and lost his money. Above that I also lost 20 lakhs of my own. I have broker statement of loss and also ITR. 1. There is no written agreement or any promises note that I will pay or not pay and in what time. It was all verbal. So far I have returned him 1.55 lakhs out of 12 and told him that I will also try to manage the rest. He insisted that he needs money now and he filed complaint in police station of cheating. Police called me and also noted down my reply and said I give him cheque or affidavit that I will pay in 6 months or they will file FIR. I haven't cheated and wish to return money but I don't have as of now. Is this cheating or fraud case? PS: He was 20 years old friend and money he gave was on mutual trust without any security cheque or agreement. Thank you.