PANews reported on January 10 that according to The Block, the co-CEO of Cube Entertainment, a large Korean entertainment company, has sparked controversy for misleading investors into investing in local cryptocurrencies. He reportedly lured investors into investing in the cryptocurrency by falsely promising returns.
Kang Seung-kon, the largest shareholder of Cube Entertainment, is suspected of encouraging acquaintances and colleagues to invest in the Nestree token issued by the South Korean blockchain company Nestree Media Group. In March 2022, Cube invested 100 million won in Nestree. Subsequently, the price of the Nestree token soared from 5 won to 50 won in a month as investors looked forward to working with Cube. However, as the value of Nestree fell, investors asked Kang Seung-kon to return the principal. He denied that there had been any promises of guaranteed returns and provided other cryptocurrency investment information. Despite this, the price of the Nestree token fell from a peak of 59 won to 39 won on the local exchange Bithumb, and further fell to single digits at the end of 2022, and is currently trading at around 4.9 won.
Kang Seung-kon denied the allegations, insisting that he had never recommended others to invest in cryptocurrencies in such a guaranteed way. Cube said it would continue to work with Nestree as part of its blockchain expansion plan. Nestree's investors are considering taking legal action against Kang Seung-kon to recover their losses.
