According to Deep Tide TechFlow, on January 10, The Block reported that South Korean K-pop giant Cube Entertainment's co-CEO and largest shareholder, Hong Seung-seong, was accused of misleading investors into investing in the cryptocurrency Nestree. According to the Korea Economic Daily, Cube invested 100 million won (approximately 68,000 USD) in Nestree Media Group in March 2022, after which the price of Nestree surged nearly 10 times to 50 won within a month.
Victims claim that Hong Seung-seong promised capital preservation during the price surge, but when the price of Nestree plummeted to single digits, he denied the related promise. Currently, the price of Nestree has dropped to 4.9 won, and investors are considering legal action. Hong Seung-seong denies the allegations, stating that this is part of the company's blockchain business expansion plan.
Affected by this, Cube Entertainment's stock price on Kosdaq fell 1.9% to 14,450 won on Friday, with a year-to-date decline of 7.4%. The company currently manages well-known artists such as (G)I-DLE and Pentagon, with revenue reaching 109 million USD in the first three quarters of 2024.