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An allegation of a crypto scandal has shaken the entertainment industry in South Korea. Local reports inform of an alleged coin fraud committed by an important blockchain platform in the country and involving popular figures in the Korean entertainment business.
Winnerz Accused of Coin Fraud
The Korean Herald reported on February 13 that the Korean blockchain sports platform Winnerz, which operates several businesses, has been accused of fraud. The platform is accused of running a coin scam and preventing investors from accessing their money.
Anonymous investors have come out claiming that the company has been issuing fake cryptocurrency, gathering investments, and forbidding investors from taking out their money. The total amount of money collected that is being refused to be returned to investors is unknown at writing time.
According to anonymous sources cited by the original report, the crypto fraud case was submitted to the National Policy Agency on February 5, following its report to the Korean National Civil Service.
Among the fraud allegations, Winnerz is accused of recruiting celebrities to boost the cryptocurrency’s credibility and attract investors. The celebrities associated with this practice could buy the coin themselves, help in the investor’s recruitment process for a commission, or do both.
In 2022, a similar case made the headlines after big celebrities and athletes started advertising EthereumMax (EMAX) on social media platforms. The most prominent figure involved was Reality TV star and socialite Kim Kardashian.
Kardashian was paid $250,000 to promote the token to her 328 million followers in 2021. In the promotional Instagram posts, the reality TV star failed to properly disclose the paid promotion nature of her stories, which resulted in a $1.2M agreement after being hit by a demand from the US Securities and Exchange Commission (SEC).
Korean Personalities Respond to Crypto Scandal Allegations
The fraud case allegations involve several known figures in the Korean entertainment industry, particularly online entertainment. The Youtubers and comedians have responded to these allegations and further explained their ties to Winnerz and the crypto scandal.
Korean comedian Na Sun-uk, featured in a Netflix reality competition show just last year, was accused of being involved in the coin fraud controversy after a picture of him at Winnerz’s year-end party resurfaced on social media.
Na took to his YouTube channel to respond to the accusations, claiming that the reports of his involvement with the fraud tactics were false. The comedian explained that the pictures came from gatherings he attended due to personal connections with the participating creators. Na said:
Both meetings were brief dining occasions. I have no affiliation with Winnerz whatsoever, and I want to clarify that I have never engaged in any coin investments.
Youtubers Kim Won-hoon and Cho Jin-se also denied their financial or business involvement with Winnerz-related official Choi Seung-jung or any other relevant parties to the controversy. Their accusation also came after the resurfacing of a picture of Kim and Choi on social media. Choi has allegedly led a slew of coin frauds in the past, including the GDC and TYP coin frauds.
However, Korean YouTuber Oh Byeong-min, known as Oking, has admitted to investing in Winnerz. Oh’s name was found on the Winnerz website, listed as one of the company’s directors.
As a response, the YouTuber announced on Thursday his intentions to withdraw his investment and cut all present and future ties with the controversial company.
Lastly, Winnerz denied the fraud allegations on its website, ensuring its business practices and goals are transparent and publicly disclosed. “Winnerz is a blockchain technology-based sports platform company, and it is an established company with both online and offline operations,” said the company, further explaining that the Winnerz coin is listed in overseas exchanges.
Feature image from Unsplash.com, Chart from Tradingview.com
