South Korean Kok Play Token Masterminds Reportedly Face Prosecution Probe, Investors 'Must Escape Now'

cryptonews.com:

South Korean prosecutors are reportedly set to investigate the company behind an Ethereum (ETH)-based altcoin named Kok Play over allegations of fraud.

The coin is, per its white paper, the brainchild of the Kok Foundation, and has been listed on a number of large international crypto exchanges. Its value grew by a whopping 2,205% in 2021, but the coin has since fallen from over USD 6.50 to under USD 0.30 at the time of writing (9:42 UTC on Friday morning), per CoinMarketCap data.

The foundation states that the coin helps power content creators, and has touted the launch of a K Stadium platform that could one day rival the likes of Netflix. It has also spoken of floating K Stadium on the Nasdaq stock exchange.

But investors have made allegations about the way tokens are “mined” and “staked” on its platform. According to the South Korean media outlet MTN, investors are invited to send tokens such as ETH to a Kok Play account on a smartphone-based “wallet” platform – and can enjoy “guaranteed” monthly staking rewards of between 3% and 12%. 

The project also operates a “tiered membership” system whereby users who refer additional members can allegedly receive higher rewards.

On the foundation’s Twitter account, all appears to be rosy, with the coin apparently powering the production of a web-based cartoon series (webtoon) and a drama series.

But, MBN reported, a group of South Korean individuals claiming to be investors have filed a complaint with the police, claiming they have struggled to make withdrawals from the platform.

The case had initially been dismissed by the police, which included allegations against four executives, including the foundation’s Chief Technical Officer, but has now been referred to the Seoul Central