According to a report by The Block on January 10, PANews stated that the co-CEO of Cube Entertainment, a large South Korean entertainment company, has sparked controversy for misleading investors into investing in local cryptocurrency. It has been reported that he lured investors into this cryptocurrency through false promises of returns.
Kang Seung-kon, the largest shareholder of Cube Entertainment, is accused of encouraging acquaintances and colleagues to invest in the Nestree tokens issued by the South Korean blockchain company Nestree Media Group. In March 2022, Cube invested 100 million won in Nestree. Subsequently, due to investor expectations of collaboration with Cube, the price of Nestree tokens soared from 5 won to 50 won within a month. However, as the value of Nestree declined, investors demanded that Kang Seung-kon return their principal. He denied ever promising guaranteed returns and provided information on other cryptocurrency investments. Nevertheless, the price of Nestree tokens fell from a peak of 59 won to 39 won on the local exchange Bithumb, and further declined to single digits by the end of 2022, currently trading at around 4.9 won.
Kang Seung-kon denied these allegations, insisting that he never advised others to invest in cryptocurrency in such a guaranteed manner. Cube stated that it would continue to collaborate with Nestree as part of its blockchain expansion plan. Meanwhile, Nestree's investors are considering legal action against Kang Seung-kon to recover their losses.