South Korean Democratic party lawmakers have demanded a probe into a KOK token scam that might be valued at $29.7 billion. According to local media reports, during a Monday National Assembly audit in Seoul, Democratic Party members Yang Moon-suk and Min Hyung-bae demanded a comprehensive probe into a cryptocurrency scam that has resulted in damages estimated to be four trillion won ($29.7 billion).
Interestingly, the largest daily newspaper in Korea, Chosun Ilbo, has come under fire from a coalition of victims for reportedly knowing that the cryptocurrency is bogus and yet pushing it further.
South Korea’s crypto market has been expanding subsequently. However, the region is also prone to many scams, given the loopholes in the virtual asset sector regulations.
What Was The KOK Token Scam?
Allegedly, 1.86 million local and foreign investors were drawn to the so-called “KOK” token, which was marketed through a multi-level marketing system. Investors were enticed to buy KOK coins and deposit them on the company’s platform, “KOK Play,” with the promise of monthly interest rates ranging from 4% to 20%.
KOK tokens were worth $7 on eight overseas cryptocurrency platforms at one point, but they fell below $0.01, causing huge losses. 900,000 Korean investors are thought to have been impacted, many of them middle-aged employees looking to increase their retirement savings or retirees trying to top up their money, according to experts.
Previously, authorities in South Korea were requesting the extradition of a major American participant in the KOK token scam. After being detained in the US, the suspect—who goes by Mr. Han—is presently being processed by an immigration court. It is anticipated that he will be sent back to South Korea through deportation soon.
The value of the KOK token has drastically decreased since 2022, when it peaked at $7 per token. Since then, it has dropped below $0.01, and trade is essentially nonexistent. KOK token delisting was notified on June 3 by the foreign exchange “KuCoin,” which was responsible for more than 90% of KOK token trading volume.