On the primary day of a dramatic Nationwide Meeting audit in Seoul, lawmakers demanded a particular investigation into the KOK cryptocurrency rip-off which will have been promoted by South Korea’s right-wing prime every day paper, the Chosun Ilbo.

In accordance with Aju Press, a coalition of victims is accusing two subsidiaries of Chosun Ilbo of selling the crypto regardless of figuring out that it was fraudulent. Jin Eun-ja, the coalition’s chief, believes these optimistic promotions have been then utilized by scammers to reassure involved traders that KOK was reliable — and that the newspaper contributed to a delay in prosecution.

It’s estimated that KOK has brought on 4 trillion gained ($2.97 billion) in damages in South Korea alone.

South Korea’s investigation into the KOK crypto fraud is led by the Ulsan District Prosecutor’s Workplace and has been ongoing for a number of years. No vital breakthroughs have been made, however South Korea remains to be awaiting the extradition of a serious KOK suspect recognized solely as ‘Mr. Han.’ He was arrested within the US earlier this 12 months and is reportedly playing with victims’ money whereas out on bail.

The coalition of victims have due to this fact referred to as for a separate, extra thorough probe to expedite accountability — sentiments which have been reportedly echoed by Democratic Occasion lawmakers Yang Moon-suk and Min Hyung-bae through the audit on Monday.

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Chosun Ilbo gave grand prize to KOK crypto rip-off

The KOK token attracted almost 2 million traders worldwide from 2019 to 2023. Korean films and video games supplied on its content material platform, KOK PLAY, could possibly be consumed with KOK tokens, which in flip could possibly be exchanged for bitcoin at a 7-12% fee.

Buyers would additionally obtain commissions for luring in different traders, primarily working as a Ponzi scheme and multi-level advertising and marketing scheme.

In accordance with Aju Press, an essential KOK milestone was reported on by Chosun Ilbo’s enterprise information arm, IT Chosun, again in April 2022. Two months later, KOK was awarded a grand prize for “consumer satisfaction” by one other subsidiary, Digital Chosun.

This isn’t the primary (or second) time that the newspaper has confronted allegations of wrongful reporting. Its former editor Track Hee-young was accused of receiving 100 million gained ($72,000) from a delivery agency and its PR company in alternate for favorable protection and a luxurious journey to Europe.

In a twist of occasions, Track was sentenced to at least one 12 months in jail and two years probation earlier than an appeals courtroom discovered him not responsible. This choice was then overturned by the Supreme Court docket in March; the excessive courtroom is anticipated to reopen his case.

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