Victims of the KOK crypto fraud have accused South Korea’s largest newspaper, Chosun Ilbo, of promoting the fraudulent scheme, which led to losses of nearly $3 billion.
Accusations of Deliberate Promotion of the KOK Token Scam
According to a press release, the victims' coalition accused Chosun Ilbo subsidiaries, IT Chosun and Digital Chosun Ilbo, of intentionally promoting the fraudulent KOK token to the public, thus providing the project with an undeserved air of legitimacy.
The coalition claims that these media outlets gave the token extensive coverage, including reports on the launch of KOK’s main transaction server and the company receiving a major consumer satisfaction award.
Media Played a Key Role in the Fraud, Victims Claim
Jin Eun-ja, leader of the victims' coalition, stated that the operators of the fraudulent scheme allegedly used these endorsements to deceive investors into trusting the project when concerns started to arise, ultimately contributing to their financial losses.
Meanwhile, lawyer Lee Min-suk, representing the coalition, pointed to the suspicious timing of Chosun Ilbo’s coverage and awards, suggesting it played a crucial role in creating an atmosphere of trustworthiness that attracted more unsuspecting investors into the scheme.
Calls for Thorough Investigation
Lee Min-suk also called for a special investigation to determine whether Chosun Ilbo’s actions helped key figures behind the fraud avoid legal issues in its early stages, particularly in light of the Ulsan District Prosecutor’s Office’s investigation, which has yet to yield meaningful results.
Fugitive KOK Promoter Arrested in the U.S.
Jin Eun-ja also expressed frustration that one of the key KOK promoters, identified only as Mr. Han, remains free in the United States despite being a fugitive. According to the latest updates, Han was arrested in the U.S. earlier this year and is awaiting extradition to South Korea.
Regulatory #crackdown
South Korean lawmakers Yang Moon-suk and Min Hyung-bae from the Democratic Party highlighted the issue during a National Assembly audit in Seoul on October 7, calling for a more thorough investigation of the KOK debacle.
The lawmakers claimed the scheme operated as a multi-level marketing system, attracting 1.86 million domestic and international investors, leading to estimated damages of 4 trillion won ($2.97 billion).
KOK Token’s Drastic Decline
In February 2022, the KOK token reached its peak at $6.83, but its value has since plummeted to $0.0003129, according to CoinGecko. The token remains active on four centralized exchanges but has seen dwindling activity, with the project's X account going silent since June 2023.
South Korean Regulators Await Do Kwon’s Extradition
Meanwhile, South Korean regulators are also awaiting the extradition of Do Kwon, the controversial founder of Terraform Labs. Kwon faces charges in both South Korea and the U.S. for an alleged $40 billion cryptocurrency fraud involving TerraUSD.
#cryptofraud , #cryptoscams , #cryptoregulation

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A disturbing trend has emerged in the cryptocurrency space, as the FBI's Internet Crime Complaint Center (IC3) reports a staggering 45% surge in crypto-related fraud cases. In 2022 alone, over 69,000 complaints were filed, resulting in a staggering $5.6 billion in losses.
Investment Scams Lead the Charge
Investment scams accounted for a whopping 71% of the total losses, with victims being lured into fake investment opportunities, Ponzi schemes, and phishing scams. The IC3 warns that these scams often involve fake websites, social media profiles, and even fake celebrity endorsements.
A Growing Concern
The rise in crypto fraud is a growing concern for investors, regulators, and law enforcement agencies. As cryptocurrency adoption increases, so do the opportunities for scammers to exploit unsuspecting victims.
Red Flags to Watch Out For
To avoid falling prey to these scams, the IC3 advises investors to be cautious of:
- Unsolicited investment offers
- Guaranteed high returns
- Pressure to invest quickly
- Unregistered investments
- Unlicensed sellers
Protecting Yourself
In addition to being vigilant, investors can take steps to protect themselves by:
- Researching investments thoroughly
- Verifying the legitimacy of investment opportunities
- Using reputable exchanges and wallets
- Keeping software and security up to date
A Call to Action
The IC3's report serves as a stark reminder of the need for increased awareness and education in the cryptocurrency space. Investors must remain vigilant, and regulators must continue to work towards creating a safer environment for all.
Stay safe, and stay informed.
#cryptofraud #InvestmentScams #CryptocurrencySafety #BlockchainSecurity