Chosun Ilbo Accused of Promoting KOK Crypto Scam

South Korea’s largest newspaper, Chosun Ilbo, is under fire for allegedly promoting the KOK cryptocurrency scam, which has resulted in nearly $3 billion in losses. Victims claim that the newspaper and its subsidiaries misled investors by presenting the KOK token as a legitimate investment opportunity. This scandal has sparked outrage among investors and lawmakers, leading to calls for a thorough investigation into the newspaper’s role in the fraudulent scheme.

Allegations Against Chosun Ilbo

Victims of the KOK crypto scam have accused Chosun Ilbo and its subsidiaries, IT Chosun and Digital Chosun Ilbo, of providing extensive and favorable coverage of the KOK token. This coverage allegedly lent credibility to the fraudulent scheme, encouraging more people to invest. The coalition of victims argues that the newspaper’s endorsements extended the life of the scam, resulting in massive financial losses for unsuspecting investors.

Attorney Lee Min-suk, representing the victims, emphasized that the timing of Chosun Ilbo’s coverage raises suspicions. He suggested that the newspaper’s support might have helped the key figures behind the crypto scam avoid legal repercussions in its early stages. As the fallout from the KOK scam continued, both victims and lawmakers began pressing for greater accountability.

The Ulsan District Prosecutor’s Office is conducting ongoing investigations, though no notable results have emerged yet. Jin Eun-ja, the coalition leader, noted that a key figure behind the KOK scam remains at large in the U.S., despite being a wanted fugitive. He was arrested earlier this year and is currently awaiting extradition to South Korea.

Impact on Investors

The KOK scam has had a devastating impact on investors, with damages estimated at 4 trillion won (around $2.97 billion). At its peak, the KOK token reached a value of $6.83 in February 2022, but it has since plummeted to $0.0003129. Despite this collapse, the token is still being traded on four crypto exchanges: ByBit, Gate.io, Indodax, and HTX, with ByBit alone recording a 24-hour trading volume of $73,114 recently.

Investors have expressed their frustration and anger towards Chosun Ilbo for its role in promoting the scam. Many believe that the newspaper’s positive coverage misled them into believing that the KOK token was a safe and profitable investment. This has led to calls for stricter regulations and oversight of media outlets to prevent similar incidents in the future.

Lawmakers have also taken notice of the scandal, with Democratic Party representatives Yang Moon-suk and Min Hyung-bae calling for a comprehensive investigation into the scheme. They claimed that the KOK operation functioned as a multi-level marketing scheme, drawing in approximately 1.86 million investors.

Responses and Actions

In response to the allegations, Chosun Ilbo has denied any wrongdoing, stating that their coverage of the KOK token was based on information available at the time. However, this has done little to quell the outrage among victims and lawmakers. The scandal has prompted discussions about the need for greater accountability and transparency in the media industry.

The Ulsan District Prosecutor’s Office continues to investigate the KOK scam, but progress has been slow. Victims are demanding swift action and justice for the financial losses they have suffered. The extradition of the key figure behind the scam, who is currently in the U.S., is seen as a crucial step in holding those responsible accountable.

As the investigation unfolds, the role of Chosun Ilbo in the KOK scam will likely remain a contentious issue. The outcome of this case could have significant implications for the media industry and the regulation of cryptocurrency investments in South Korea