March 27, 2024
South Korean Crypto Scandal, Celebrities Linked to Winnerz Fraud
Latest Cryptocurrency News

South Korean Crypto Scandal: Celebrities Linked to Winnerz Fraud

South Korea is embroiled in a crypto scandal allegedly involving numerous celebrities and YouTubers promoting a suspected fraudulent scheme. Winnerz, a South Korean blockchain sports platform with diverse businesses, including cryptocurrency issuance, is accused of orchestrating a coin scam. The purported fraud surfaced when anonymous investors reported that the company issued fake cryptocurrency, gathered investments, and obstructed withdrawals.

On Feb. 5, the National Police Agency received a complaint about Winnerz’s deceptive practices after it was initially reported to the National Civil Service. The company allegedly enlisted popular celebrities and YouTubers to endorse its fraudulent scheme. Celebrities like comedian Na Sun-uk were seen at Winnerz’s year-end party, raising suspicions about their involvement. Winnerz representative Choi Seung-Jung, linked to celebrities, faces allegations of orchestrating various crypto token frauds, including the GDG and TYP coin scams.

Using celebrities to promote fraudulent projects is not exclusive to South Korea or the crypto market, with similar tactics employed globally. Celebrities like Kim Kardashian and Floyd Mayweather have faced legal consequences for endorsing fraudulent crypto schemes.

Several celebrities implicated in the Winnerz controversy have denied any association with the firm, while some admitted to investing in the alleged fraudulent crypto. YouTubers Kim Won-hoon and Cho Jin-se denied involvement, attributing their presence at Winnerz’s event to other commitments. Notably, YouTuber Oh Byeong-min, with two million subscribers, acknowledged investing in Winnerz but announced his disassociation amid the ongoing controversy.

Oh Byeong-min clarified his departure, stating he had ceased all projects with Winnerz and had no plans for future collaborations due to the controversy. The widespread use of celebrities and influencers in crypto promotions has raised concerns globally, emphasizing the need for increased scrutiny and regulation in the industry. The Winnerz scandal underscores the challenges posed by deceptive practices and the importance of transparency in crypto projects to safeguard investors.

Image by Freepik

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