Cryptocurrency scandal KOK in South Korea: Media manipulations and financial losses

Scandal Involving the KOK Cryptocurrency in South Korea

The scandal surrounding the KOK cryptocurrency in South Korea is gaining attention following accusations of fraud against victims related to this token by the largest Korean daily newspaper – Chosun IIbo. The allegations point to the deliberate promotion of a false scheme that resulted in financial losses amounting to at least 2.97 billion dollars.

Accusations Against the Newspaper Chosun IIbo

A coalition of victims has accused the IT divisions of Chosun and Digital Chosun Ilbo, belonging to Chosun IIbo, of providing extensive coverage that legitimized the KOK token. This promotion of the project included information about the launch of KOK’s main transaction server and awarding the company the main customer satisfaction prize. The coalition leader, Jin Eun-ja, claims that scheme operators used this support to lure investors and contribute to their financial losses.

Key Events and Doubts

Lawyer Lee Min-suk noted the suspicious timing of articles in Chosun Ilbo and the awards granted, suggesting that they played a significant role in legitimizing the scheme and convincing more people to invest in KOK. Therefore, a call was made for a detailed investigation to determine whether the newspaper’s actions helped key individuals avoid legal consequences.

Pyramid Scheme and Consequences

The pyramid scheme attracted 1.86 million investors, both domestic and foreign, causing damages of around 29.7 billion dollars. The value of the KOK token peaked in February 2022 but has since sharply declined according to CoinGecko data.

Current Situation and Next Steps

Despite the collapse in KOK’s value, the token is still listed on four centralized exchanges, with the highest trading volume recorded on ByBit. Korean regulators are awaiting the extradition of Do Kwon, the founder of Terraform Labs, accused of a 40 billion dollar fraud involving the TerraUSD cryptocurrency.

The KOK-related scandal reveals the dark sides of the cryptocurrency market in South Korea and prompts questions regarding media accountability and regulations in such cases.