Chosun Ilbo under Fire for Allegedly Promoting KOK crypto Scam
Chosun Ilbo, South Korea's largest newspaper, is facing backlash for allegedly promoting the KOK cryptocurrency scheme, which resulted in losses amounting to $2.97 billion, as per reports by Aju Press on Tuesday.
A group of victims has accused Chosun Ilbo and its subsidiaries, IT Chosun and Digital Chosun Ilbo, of deceiving the public by presenting the KOK Token as a legitimate investment opportunity.
Chosun Ilbo’s Alleged Role in KOK Crypto Scam
Victims of the KOK scam claim that the media outlets provided extensive and favorable coverage that lent credibility to the token. Reports even highlighted the launch of KOK's main transaction server and consumer satisfaction awards, further legitimizing the scheme in the eyes of the public.
According to coalition leader Jin Eun-ja, the media endorsements likely prolonged the longevity of the scam, leading to substantial financial losses for unsuspecting investors.
Attorney Lee Min-suk, representing the victims, raised suspicions about the timing of Chosun Ilbo's coverage, suggesting that it may have helped the key figures behind the Crypto scam evade Legal consequences in the early stages.
As investigations into the KOK scam continue, victims and lawmakers are pushing for greater accountability. The Ulsan District Prosecutor's Office is actively investigating the matter, although no significant developments have been reported as of yet.
Responses and Actions by Lawmakers and Regulators
The KOK scandal has caught the attention of South Korean lawmakers, who, during a National Assembly audit on October 7, called for a comprehensive investigation into the scheme. They alleged that the KOK operation operated as a multi-level marketing scheme, attracting around 1.86 million investors and causing damages estimated at 4 trillion won.
Despite the KOK token's peak value of $6.83 in February 2022, it has since plummeted to $0.0003129. Nevertheless, the token continues to be traded on Exchanges such as ByBit, Gate.io, Indodax, and HTX.
Lawmakers are concerned about the future of Investments, especially since the KOK project seems to have been abandoned by its operators, with no social media activity recorded since June 2023.
Broader Regulatory Context
In a related Development, South Korean regulators are closely monitoring the case of Do Kwon, the founder of Terraform Labs, who is facing separate allegations related to a $40 billion Cryptocurrency fraud involving the collapse of TerraUSD.
The case has heightened regulatory scrutiny in both South Korea and the United States, as Terraform Labs and Do Kwon reached a $4.47 billion settlement with the U.S. Securities and Exchange Commission in June.
Stay tuned for more updates on the unfolding KOK crypto scam and the regulatory actions being taken in response to such fraudulent schemes.
