South Korean lawmakers Yang Moon-suk and Min Hyung-bae urged a comprehensive investigation into the alleged cryptocurrency fraud surrounding the KOK token during a National Assembly audit held in Seoul on Monday. The scheme, promoted through a multi-level marketing structure that promised monthly returns between 4% and 20%, has resulted in approximately 4 trillion won ($3 billion) in losses, impacting nearly 1.86 million investors worldwide.
Lawmakers Demand Probe
At the audit, Yang and Min emphasized that the collapse of the KOK token was not an isolated incident but part of a broader fraudulent scheme. They called for consolidated efforts by financial regulators and the prosecution to hold the perpetrators accountable, noting the sheer magnitude of the fraud that has left retirees and middle-aged workers financially devastated.
According to local reports, the token once traded at $7 on international exchanges before plunging to virtually zero, wiping out the life savings of many investors who had been lured by the promise of guaranteed high returns.
Victims Accuse Chosun Ilbo
Lawyer Lee Min-suk, representing the victims, submitted evidence during the audit that South Korea's largest newspaper, Chosun Ilbo, played a facilitating role by promoting the KOK token through award ceremonies and favorable coverage despite allegedly being aware of its fraudulent nature. The victims' coalition demanded that Chosun Ilbo issue a formal apology and remove all KOK-related content.
Jin Eun-ja, a leading victim, disclosed that KOK’s top recruiter—a fugitive currently out on bail in the United States—is believed to have used investor funds for gambling. “Chosun Ilbo’s endorsement gave the scam credibility, and now they must take responsibility,” Jin said outside the audit session.
Scope of Damage
The fraud has disproportionately affected middle-aged workers and retirees, many of whom invested their entire pensions. An anonymous victim told reporters, “We trusted Chosun Ilbo, the most respected newspaper, so we assumed it was a legitimate investment. It turned out to be a carefully orchestrated fraud.”
The case has drawn international attention, with victims from multiple countries exploring collective legal action. South Korea's Financial Supervisory Service has pledged to collaborate with relevant authorities to trace assets and ensure a thorough investigation.