Suspected Scam Coin Operator Arrested in South Korea Tied to Winnerz Controversy
In a significant development related to the ongoing Winnerz blockchain firm controversy, South Korean police have apprehended a suspect involved in a “scam coin” case. The arrest took place in Gimpo, Gyeonggi Province, where an individual in their 20s was charged with fraud. Another person in their 20s was also charged with aiding and abetting fraud. The police have refrained from releasing further details about the suspects due to legal reasons, although the individual charged with fraud, referred to as “A” by the press, was revealed to be the CEO of a cryptoasset-related company.
Authorities also disclosed that the accused company had utilized celebrities, including a former national soccer player, to promote their coin. This revelation coincided with 2002 World Cup star Lee Chun-soo admitting that he had discussions with the operators of the Golden Goal (GDG) coin regarding a possible NFT collaboration in 2021. GDG officials had released photos of Lee in September 2021 to boost their project, but the soccer player revealed that the images were used without his permission or knowledge.
The arrest involved investors who were promised gains from purchasing a token before its listing on domestic exchanges. However, the said token was never listed, and the investors later encountered issues when attempting to withdraw their investments from a GDG-related platform. As per the police, individual A is accused of defrauding around 30 investors out of over $2.25 million. Notably, A had initiated virtual currency operations in March 2021. Despite police failing to secure an arrest warrant for A previously, their recent attempt was successful, possibly due to Lee’s testimonies and the mounting scrutiny surrounding Winnerz’s “scam coin” projects.
Winnerz, the firm at the center of the media storm, has denied any wrongdoing and sought to distance itself from various “scam” tokens associated with Winnerz. However, South Korean netizens have pointed fingers at an individual named Choi Seung-jung, supposedly affiliated with Winnerz, as the mastermind behind the GDG project. Police officials have expressed their intentions to complete the investigation into A and the second suspect promptly. While both individuals were released pending a court hearing, officers revealed that they plan to hand the case over to the prosecution.
In recent developments, several prominent YouTubers, TV personalities, and social media influencers have distanced themselves from Winnerz following allegations of operating a “multi-level scam.” An anonymous post exposing Winnerz as such went viral, with the investors involved claiming to have taken their grievances to the police. Additionally, YouTuber Oking admitted to anonymously investing in Winnerz in a video released last week.
These events unfold alongside rumors of regulatory interest in investigating the 2023 NFT-powered concert ticket sales of renowned K-pop star and “Gangnam Style” singer PSY. Furthermore, there are reports of Japanese Prime Minister Fumio Kishida considering a visit to South Korea on March 20, 2024.