South Korean Prosecutors Investigate KOK Foundation Over Fraud Allegations

• South Korean prosecutors are investigating the company KOK Foundation, which created Kok Coin, over fraud allegations.
• KOK Foundation promised to reward users with extra returns when they bring in new investors
• Investors had to pay “cancellation fees” in certain cases and pay heavy penalties if they attempted to withdraw funds.

South Korean prosecutors are investigating the company KOK Foundation, which created the Ethereum-based altcoin KOK Coin, over fraud allegations.

According to MTN, a South Korean media outlet, investors made allegations about the way the tokens were mined and staked. KOK Foundation would advertise that when investors exchange another cryptocurrency (like Ethereum) for KOK coins, in return, investors would receive 3% to 12%  interest every month.

Additionally, the company promised to reward users with extra returns when they bring in new investors. MTN had also reported that a group of investors filed a complaint with the police after they could not make withdrawals from the platform. Investors added that KOK Foundation had warned users that if they withdraw their funds, they will not be allowed to return.

Investors also added that they had to pay “cancellation fees” in certain cases and pay heavy penalties if they attempted to withdraw funds within a month of making their investments.

In another article by Korea Times Daily, a Korean-language Canadian media outlet, Kim Kyung-nam, a lawyer at ForYou legal firm, opined that KOK play has just created 10 TV programs even though the company claimed that it would overthrow “existing media conglomerates and make huge profits.”

The lawyer further adds:

What is certain is that those who have entered the KOK Play [ecosystem] must escape now.

Kok Coin (KOK) has been listed on various large international crypto exchanges. In 2021, KOK’s value grew by 2,205%, but the coin has fallen from USD 6.50 to under USD 0.28 at the time of writing.