🌎 Victims Accuse South Korean Newspaper of Promoting $2.97B Crypto Scam

Victims of the KOK Crypto Scam Accuse South Korean Newspaper of Promotion

Victims of the KOK crypto scam have accused South Korea’s largest daily newspaper of promoting the fraudulent scheme, resulting in losses amounting to at least $2.97 billion.

Allegations Against Chosun Ilbo

A coalition of victims claims that subsidiaries of Chosun Ilbo, namely IT Chosun and Digital Chosun Ilbo, deliberately promoted the fraudulent KOK token scheme to the public. These media outlets reportedly provided extensive coverage that lent legitimacy to the token, including reporting on the launch of KOK’s main transaction server and awarding the company a grand prize for consumer satisfaction.

Misleading Endorsements

Jin Eun-ja, the coalition leader, alleges that scheme operators used these endorsements to mislead investors into trusting the project when concerns about it emerged, ultimately contributing to their financial losses.

Attorney Lee Min-suk, representing the coalition, highlighted the suspicious timing of Chosun Ilbo’s coverage and awards. He suggested that this played a key role in giving the scheme an air of credibility, drawing more unsuspecting investors into the scam. Lee Min-suk has called for a special investigation to determine whether Chosun Ilbo’s actions helped key figures in the scam avoid legal trouble early on, especially considering the Ulsan District Prosecutor’s Office investigation, which has yet to yield meaningful results.

Key Promoter Still at Large

Eun-ja also expressed frustration that one of the key promoters of KOK, identified only as Mr. Han, remains free in the United States despite being a red-notice fugitive. As of the last update, Han was arrested in the US earlier this year and is awaiting extradition to South Korea.

Government Response

Democratic Party lawmakers Yang Moon-suk and Min Hyung-bae raised the issue during an October 7 National Assembly audit in Seoul, calling for a more thorough investigation into the entire KOK debacle. The lawmakers allege that the scheme operated as a multi-level marketing scheme, managing to attract 1.86 million domestic and international investors and leading to approximately four trillion won ($29.7 billion) in damages.

Token Value Plummets

At its peak, the KOK token reached as high as $6.83 in February 2022. However, its value has since plummeted dramatically to $0.0003129 at the time of writing, according to CoinGecko data. Despite this, the token remains live on four centralized exchanges: ByBit, Gate.io, Indodax, and HTX, with its highest 24-hour trading volume of $73,114 recorded on ByBit. The operators seem to have abandoned the project’s social media accounts, with the last post made in June 2023.

Related Developments

In other news, South Korean regulators are also awaiting the extradition of Do Kwon, the controversial founder of Terraform Labs. Kwon faces charges in South Korea and the United States related to an alleged $40 billion cryptocurrency fraud involving TerraUSD.