The so-called "KOK" token, promoted through a multi-level marketing scheme, attracted 1.86 million domestic and international investors. Promises of monthly interest rates between 4 percent and 20 percent lured investors into purchasing KOK coins and depositing them on its platform "KOK Play."
Although KOK tokens were once valued at $7 on eight foreign cryptocurrency exchanges, their value plummeted to $0.01, resulting in significant losses. Experts estimate that 900,000 Korean investors were affected, many of them middle-aged workers seeking to grow their retirement savings or retirees trying to supplement their funds.
A coalition of the victims has accused Chosun Ilbo, Korea's largest daily newspaper, of exacerbating the fraud by promoting the cryptocurrency, despite allegedly being aware of its fraudulent nature.
In April 2022, IT Chosun, a subsidiary of Chosun Ilbo, reported on the launch of KOK's main transaction server. Two months later, Digital Chosun Ilbo, another subsidiary of the daily, awarded the company a grand prize for consumer satisfaction at an awards event.
Attorney Lee Min-suk, representing the victims, pointed out the suspicious timing of these endorsements, suggesting that the daily may have effectively enabled the scam. Lee claimed the ongoing investigation by the Ulsan District Prosecutor's Office for failing to produce significant outcomes, despite the massive losses incurred. He called for a special investigation to thoroughly address the case.
Jin Eun-ja, the leader of the coalition, pointed out that when concerns about KOK's fraudulent activities emerged, KOK staffers tried to reassure worried investors by referencing articles from Chosun Ilbo. She claimed that otherwise, many KOK recruiters might have already faced prosecution.
Jin also revealed that one of the top KOK recruiters, despite being a red-notice fugitive, is currently out on bail in the U.S., allegedly using victims' money to gamble in casinos. Jin urged Chosun Ilbo to issue an apology and remove all KOK-related content.
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