K-Pop Crypto
Scam?
Cube Entertainment
CEO Accused
Of Investment• Экономика » Финансы » Инвестиции Scheme
K-Pop Crypto Scam? Cube Entertainment CEO Accused Of Investment• Экономика » Финансы » Инвестиции Scheme
by Rubmar Garcia
25 minutes ago
in Breaking News Ticker
0
The CEO of K-pop giant Cube Entertainment is under fire after being accused of
participating in a crypto investment• Экономика » Финансы » Инвестиции scam. He is suspected of allegedly using
the entertainment company to inflate the price of the alleged scam token and
now risks legal action.
Related Reading: Oklahoma Senator Introduces Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin Freedom Act To Allow BTC
Payments
K-Pop Powerhouse CEO Under Fire
On Thursday, local news reported that Kang Seung-gon, CEO of Cube
Entertainment, was accused of participating in a crypto scheme In 2022. Kang,
who is the company’s majority shareholder, allegedly used the K-pop powerhouse
to inflate a cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта’s value and encouraged people around him to invest
in the token.
In March 2022, Cube invested 100 million won, worth around $67.834, in Nestree
Group Media (NMG) by participating in the company’s capital increase. As a
result, Cube reportedly secured a 40% stake in the blockchain• Информационные технологии » Информационно-коммуникационные технологии » Информационные технологии и телекоммуникации » Базы данных » Публичная база транзакций » Блокчейн
• Высокие технологии » Информационные технологии и телекоммуникации » Базы данных » Публичная база транзакций » Блокчейн technology
company.
According to the report, the price of the company’s cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта, Nestree
(EGG), increased tenfold in a month after Cube’s investment• Экономика » Финансы » Инвестиции news. The token’s
price jumped from 5 won, worth around $0.0034, to about 60 won, worth around
$0.041, by March 28, 2022.
However, Nestree’s price plunged 34% the next month and continued its freefall
to the 5-won mark the following year. As of this writing, the token trades at
4.8 won, or $0.0033, on Bithumb.
Nestree (EGG) price action over the years: Source: Bithumb
It’s worth noting that Nestree Group Media listed its token on South Korean• Республика Корея
exchanges Coinone and Bithumb between August 2019 and April 2020, “claiming to
be a messenger service specialized for blockchain• Информационные технологии » Информационно-коммуникационные технологии » Информационные технологии и телекоммуникации » Базы данных » Публичная база транзакций » Блокчейн
• Высокие технологии » Информационные технологии и телекоммуникации » Базы данных » Публичная база транзакций » Блокчейн-based communities.”
According to the report, the company’s main business• Экономика » Бизнес has been “virtually shut
down.” Meanwhile, Nestree Mall, the company’s reward-based shopping mall for
the crypto market• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта, hasn t been shut down but has sold out or
discontinued all registered products.
Kang Denies Crypto Scam Involvement
Kang is accused of using his influence to encourage acquaintances and
associates to acquire Nestree’s token before and after Cube’s investment• Экономика » Финансы » Инвестиции in
the company, allegedly guaranteeing the return on the initial investment• Экономика » Финансы » Инвестиции.
An investor• Экономика » Финансы » Инвестиции » Инвестор claims that “In early 2022, Mr. Kang encouraged me to invest,
saying, I will guarantee the principal, so please trust me, ”
adding that, “Believing his words, securities firms, Cube Entertainment
officials, and loan sharks rushed to invest in Nestree.”
Another investor• Экономика » Финансы » Инвестиции » Инвестор alleged they “believed Mr. Kang s words and invested
about 80 million won in Nestree in March 2022, but lost over 70 million won
when the value of Nestree plummeted.”
Reportedly, the affected investors asked the CEO to “guarantee their principal
as promised” but were told Kang never promised such a thing. Instead, some
investors allegedly received new investment• Экономика » Финансы » Инвестиции suggestions from Kang and the
promise to “help them make up for their losses with other coins.”
Nonetheless, Cube’s CEO has denied the allegations , claiming that neither he
nor the company have been involved in a crypto scam. He emphasized that “there
is no evidence that we recommended a cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта investment• Экономика » Финансы » Инвестиции under the
condition of a principal guarantee.”
Kang added that the K-pop company’s investment• Экономика » Финансы » Инвестиции in Nestree Group Media was
“part of Cube Entertainment’s expansion into the new blockchain• Информационные технологии » Информационно-коммуникационные технологии » Информационные технологии и телекоммуникации » Базы данных » Публичная база транзакций » Блокчейн
• Высокие технологии » Информационные технологии и телекоммуникации » Базы данных » Публичная база транзакций » Блокчейн business• Экономика » Бизнес, and
we plan to continue our business• Экономика » Бизнес collaboration with Nestree.” He concluded his
response by affirming that, despite investing in EGG before Cube’s
partnership, he “didn’t profit from selling at the peak but rather lost
money.”
Despite denying the allegations, the alleged victims are considering legal
action against Kang.
Related Reading: South Korea• Республика Корея To Ease Institutional Crypto Investment• Экономика » Финансы » Инвестиции
Restrictions This Year
Total crypto market• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта capitalization is at $3.24 trillion. Source: TOTAL on
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Featured Image from Unsplash.com, Chart from TradingView.com