- A new scandal has rocked South Korea’s crypto industry.
- The scandal allegedly involves fraud by a prominent blockchain company.
- Multiple celebrities have been caught in the middle of the allegations.
The South Korean crypto industry has lately made several headlines over what appears to be its growing influence locally and overseas. So promising is the industry that the government is planning talks on Bitcoin ETF and other virtual asset measures with U.S. SEC’s Gensler.
But as South Korea is keen on fostering a regulated crypto environment with enhanced user protection measures, a wave of digital asset scandals threatens to enfeeble these efforts.
Hardly a week after the country threatened crypto criminals with a life sentence, another scandal has rocked the digital assets industry.
South Korean Celebrities Caught in Winnerz Crypto Scandal
According to a local media report, multiple South Korean celebrities and popular YouTubers have found themselves on the receiving end of a brewing crypto scandal involving Winnerz, a blockchain sports platform accused of issuing a fake cryptocurrency.
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Winnerz has allegedly recruited celebrities to boost the credibility of its coin by buying it themselves or helping convince other users to invest in the coin in exchange for a commission. After the platform reportedly refused to return an unspecified amount of money to investors, the National Police Agency opened a case against it on February 5.
Following the development, some implicated celebrities have vehemently denied their involvement with Winnerz, while one has taken responsibility.
Celebrities Jump on Defense Mode
Comedian Na Sun-uk took to his YouTube channel and denied “any affiliations with Winnerz whatsoever,” noting that he only took pictures at the company’s year-end party due to his “personal connections” with participating creators.
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YouTube channel Shortbox operators Kim Won-hoon and Cho Jin-se also distanced themselves from the fraud allegations, noting that they never discussed business or financial transactions with Winnerz-related officials, despite appearing in a picture together.
YouTuber Oh Byeong-min, popularly known as Oking, admitted to investing in Winnerz after his name was listed as one of the company’s directors. Oking stated that he would withdraw his investment from Winnerz and cease future engagement with the project.
Per the report, in response to the fraud allegations, Winnerz issued a statement reiterating that its business was legitimate and that its coin was listed in overseas crypto exchanges.
Read why some exchanges may be expelled from South Korea:
‘Ineligible’ South Korea Crypto Exchanges Face Expulsion
Stay updated on why South Korea wants to screen crypto executives:
South Korea Wants Crypto Executives Vetted Starting in March
