Chosun Ilbo Faces Backlash for Alleged Support of KOK Cryptocurrency Fraud 🌐
South Korea’s leading newspaper, Chosun Ilbo, is facing significant criticism for allegedly endorsing the KOK cryptocurrency scheme, a scheme that resulted in devastating financial losses amounting to approximately $2.97 billion. Aju Press reported on this alarming situation, highlighting the outrage among affected investors in this year.
🚨 Allegations Against Chosun Ilbo: Supporting a Fraudulent Venture
A coalition of individuals who lost money in the KOK scam has publicly accused Chosun Ilbo and its related outlets, such as IT Chosun and Digital Chosun Ilbo, of misleading the public regarding the legitimacy of the KOK token as a viable investment.
These victims assert that extensive favorable coverage provided by the media outlets contributed to the perceived legitimacy of the KOK token, making it more appealing to potential investors. Articles featured the launch of KOK’s primary transaction server and hailed consumer satisfaction awards, which bolstered the misleading reputation of the cryptocurrency.
Jin Eun-ja, the leader of the victims’ coalition, pointed out that such media endorsements likely prolonged the existence of the scam, ultimately leading to massive financial damages for innocent investors. Furthermore, attorney Lee Min-suk, representing the distraught investors, raised questions about the timing of Chosun Ilbo’s articles, suggesting that the newspaper’s favorable coverage might have shielded key figures behind the KOK project from facing legal consequences early on.
📜 Ongoing Investigations and Demands for Accountability
The fallout from the KOK cryptocurrency debacle has prompted victims and lawmakers to call for enhanced accountability from those involved. The Ulsan District Prosecutor’s Office is currently engaging in investigations related to the matter, although significant developments have yet to surface.
One particularly concerning detail shared by Jin Eun-ja is that a suspect tied to the KOK scam remains elusive, reportedly residing in the United States despite being wanted. This individual had been apprehended earlier this year, and they are currently awaiting extradition back to South Korea to address charges linked to the fraudulent operation.
⚖️ Legislative Reactions and Regulatory Measures
The KOK scandal has captured the attention of South Korea’s lawmakers. During a recent National Assembly audit on October 7, members of the Democratic Party, including Yang Moon-suk and Min Hyung-bae, advocated for a thorough investigation into the KOK operation, which they asserted functioned as a multi-level marketing scheme. This operation drew in around 1.86 million investors, leading to estimated damages of approximately 4 trillion won (close to $2.97 billion).
At its peak, the KOK token reached values of $6.83 in February 2022. However, it has since experienced a staggering drop, with current values reported at around $0.0003129. Despite this significant depreciation, trading of the KOK token continues on four exchanges: ByBit, Gate.io, Indodax, and HTX, with a notable 24-hour trading volume of $73,114 recently recorded on ByBit alone.
The project’s team appears to have mostly abandoned operations, with their last activity on social media noted in June 2023. This has fueled investor anxieties regarding the future of their holdings in KOK.
🌍 Wider Regulatory Landscape in South Korea
Additionally, the case surrounding KOK unfolds amid heightened scrutiny of other sizable cryptocurrency operations, particularly those connected to Do Kwon, the founder of Terraform Labs. Kwon faces separate allegations related to a staggering $40 billion fraudulent scheme that led to the collapse of TerraUSD, which has intensified regulatory examinations both in South Korea and the United States.
This evolving atmosphere reflects a broader commitment by financial regulators to enhance oversight and accountability in the cryptocurrency sector, as they work to safeguard investors and curtail fraudulent behaviors. The developments from both Chosun Ilbo’s involvement in the KOK scam and Do Kwon’s controversies highlight the pressing need for proper regulations and transparency in the rapidly evolving cryptocurrency landscape.
Hot Take 🔥
The controversy surrounding Chosun Ilbo’s alleged role in supporting the KOK cryptocurrency scheme underscores an essential lesson in investor vigilance and the responsibility of media outlets to ensure accurate reporting. As investigations proceed, both victims of the scam and regulatory bodies are left grappling with the consequences of these events. This year serves as a crucial reminder to scrutinize purported investment opportunities carefully, especially in a domain as volatile as cryptocurrency.
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