South Korea Investigates KOK Token Crash, $3 Billion Lost

• South Korean lawmakers want a deeper probe into the KOK scam.
• The KOK token caused investors’ $3 billion in losses.
• KOK was priced at $7 at its peak and is now trading at $0.0007.

Lawmakers in South Korea are calling for a deeper investigation into the KOK crypto token scam and have urged the government to take action against those responsible for the token’s sudden price crash.

According to Aju Business Daily, Democratic Party lawmakers Yang Moon-seok and Min Hyung-bae want a comprehensive investigation into the cryptocurrency’s collapse, which affected over 1.86 million investors in South Korea and other countries. The KOK token was listed on eight different exchanges.

At one point during the crypto winter, the KOK token was worth $7 but as per the data from CoinMarketCap, the price of the altcoin at the time of writing stands at $0.0007151, significantly down in the past two years. This crash resulted in ₩4 trillion ($3 billion) in losses for investors.

Read also : Crypto Now Safer in South Korea Thanks to This New Foundation

The KOK Foundation claims to have a mission of delivering “Keystone of Opportunity and Knowledge” and improving the distorted systems of digital media projects with the help of Blockchain technology. The project’s X account seems to be abandoned and the last active post from KOK Foundation was on June 19, 2023. 

$742 Million Lost Last Year

Investors in South Korea lost ₩1 trillion (approximately $742 million) last year to crypto scams and fraudulent investment schemes, according to Chosun Biz. These schemes promised significant returns but left investors with nothing.

The number of victims jumped 28% from the previous year, with 5,125 people losing money. Authorities report that 37% of the incidents involved tactics like deceptive information, romance scams, fake investment group chats, and online scams.