South Korea finds itself embroiled in a purported cryptocurrency scandal allegedly involving numerous celebrities and YouTubers who have been linked to endorsing fraudulent schemes.
Winnerz, a blockchain sports platform headquartered in South Korea, which oversees various ventures including cryptocurrency issuance, faces allegations of orchestrating a coin scam, as detailed in a report by The Korea Herald. The accusations surfaced after anonymous investors lodged complaints, asserting that the company had distributed counterfeit cryptocurrencies, solicited investments, and obstructed investors from withdrawing their funds.
The purported scheme was formally reported to the National Civil Service Agency and subsequently to the National Police Agency on February 5th.
Accusations against Winnerz extend to claims of leveraging prominent celebrities and YouTubers to promote its fraudulent activities, with some allegedly purchasing the tokens themselves or aiding in recruiting additional investors in exchange for commissions. Suspicions regarding celebrity involvement emerged following the identification of images featuring celebrities, including comedian Na Soon-wook, at Winnerz's year-end gathering. Choi Seung-Jung, a prominent figure associated with Winnerz and photographed with celebrities, faces accusations related to multiple cryptocurrency token frauds, including GDG and TYP coin schemes.
The exploitation of celebrities to endorse deceitful projects is not unique to South Korea or the cryptocurrency realm, having been a prevalent tactic for years. Celebrities such as Kim Kardashian and Floyd Mayweather have faced legal action and fines for promoting fraudulent cryptocurrency ventures. Many of the celebrities implicated in ties to Winnerz have refuted any association with the company. Nevertheless, some have disclosed investments in purportedly fraudulent cryptocurrencies. Notably, individuals like Sun-uk, along with popular YouTubers Kim Won-hoon and Cho Jin-se, have disclaimed any investment or involvement in the contentious project, asserting their attendance at the event was due to other personal commitments.
In another development, Oh Byung-min, a prominent South Korean YouTuber with a substantial following of 2 million subscribers, admitted to investing in the Winnerz project after his name was discovered among the company's directors. However, in light of the ongoing controversy surrounding Winnerz, the YouTuber announced his disassociation, declaring the termination of "all collaborations with Winnerz" and the absence of plans for future involvement with the company.
