South Korean Kok Pay Token Faces Prosecution Probe – Investors Run

South Korean Kok Pay token faces a prosecution probe with news coming out of the country of the company being investigated for fraud by the South Korean Prosecutors Office.

According to its white paper, the coin is the brainchild of the Kok Foundation and has been listed on a number of major international cryptocurrency exchanges. Its value increased by a remarkable 2,205% in 2021, but it has subsequently dropped from more than USD 6.50 to less than USD 0.30 at the time of writing (9:42 UTC on Friday morning), according to CoinMarketCap statistics.

The organization claims that the token will assist fuel content creators and has announced the establishment of a K Stadium platform that would one day compete with Netflix. It has also shown interest in listing K Stadium on the Nasdaq stock exchange.

South Korean Kok Pay Token Faces Prosecution Probe

However, investors have raised concerns about how tokens are “mined” and “staked” on its network. MTN, a South Korean news source, reports that investors may receive “guaranteed” monthly staking payments of between 3% and 12% by sending tokens like ETH to a Kok Play account on a platform that runs on smartphones.

The initiative apparently has a “tiered membership” structure in place, where users who refer new members are purportedly rewarded more generously.

All appears to be OK on the foundation’s Twitter account, with the currency reportedly financing the development of a web-based cartoon series (webtoon) and a drama series.

However, according to MBN, a group of South Korean persons claiming to be investors have filed a complaint with the police, alleging they have been unable to withdraw funds from the site.

The investigation, which included claims against four officials, including the foundation’s Chief Technical Officer, was first rejected by police but has now been transferred to the Seoul Central District Prosecutors’ Office.

The investors’ legal team, the law firm Right Law, protested, arguing that police had not conducted a comprehensive enough investigation. Such arguments are rarely granted “unconditionally,” according to a Right Law attorney unless prosecutors feel police officers made serious mistakes in their investigations.

It’s Not New

According to MBN, the “controversy” surrounding the currency began in May of last year, when a group of 97 Japanese investors sought to sue the organization, saying that they couldn’t access their money. That case is still active.

Then, in May of this year, a group of South Korean ex-pats expressed their displeasure.

It would appear that we are in the early days of another big scandal, maybe even a Ponzi or/and pyramid scheme. We will be watching closely how the story develops.

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