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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