Gairika Mitra
Chosun Ilbo, South Korea’s country’s largest newspaper, allegedly boosted a cryptocurrency scheme that cost nearly $3 billion.
Incubator IBC Group shared this via a post on X, where it said that the paper’s subsidiaries reportedly gave the KOK token positive coverage and awards. This led many to see it as a safe bet. However, critics say this helped legitimize the scam, which authorities have now shut down.
“We were deceived by the Chosun Ilbo coverage,” said one investor who lost $100,000 in the KOK token. “They made it sound like a legitimate investment.”
As the KOK token plummets from a high of 6.83 to just 0.0003, investors are demanding answers. The newspaper has yet to issue a statement on the matter.
The issue comes at a time when the Ministry of Strategy and Finance in South Korea announced new measures to monitor cross-border transactions involving dollar-pegged stablecoins. The Ministry also reportedly shared that it is monitoring cross-border transactions involving dollar-pegged stablecoins.
Additionally, South Korea introduced a $220,000 supervisory fee for domestic crypto exchanges as part of its Virtual Asset User Protection Act (VAUPA) regulations. The Financial Services Commission (FSC) said that virtual asset operators will start paying their fees on January 1, 2025.
This new fee is a way to cover the cost of regulatory oversight and supervision of crypto exchanges in the country. Per VAUPA regulations, crypto exchanges need to pay a supervisory fee based on their operating revenue from the previous fiscal year. The FSC said that it will work closely with the Ministry of Strategy and Finance (MSF) to address any concerns or issues related to crypto exchange operations.
Crackdown on Crypto Market Misconduct
The Shib Daily reported previously that authorities in South Korea are stepping up efforts to combat misconduct and illegal activities in the crypto space. In a recent meeting with CEOs of major crypto exchanges, Lee Bok-hyun, chief of the Financial Supervisory Service (FSS), pledged to eradicate unfair trade practices and zero tolerance for any wrongdoing.
Lee’s hardline stance comes as South Korea’s cryptocurrency market faces growing scrutiny amid concerns about price manipulation, rumor-driven trading, and potential money laundering activities. Lee committed to closely monitoring market prices and working with other regulatory agencies to address any suspicious behavior. He emphasized a zero-tolerance approach, promising to hold wrongdoers strictly accountable for any malpractices.
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Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
