- The police raid on Winnerz’s offices in South Korea as part of an investigation into alleged fraudulent activities and the issuance of a “scam coin” highlights the increasing level of scrutiny faced by blockchain platforms.
- As the cryptocurrency industry continues to grow, authorities are becoming more vigilant in monitoring and addressing potential fraudulent practices within the space.
South Korean police conducted a raid on the offices of the sports-themed blockchain platform Winnerz as part of an investigation into allegations that its WNZ token is a “scam coin.” The Seoul Metropolitan Police Agency’s criminal task force searched two locations on April 16.
Winnerz Offices and Former CEO’s Home Searched
The police raided a Winnerz office in Gangnam, Seoul, and the home of the former Winnerz CEO Choi Seung-jeong on April 1. A court warrant allowed police to search the premises on suspicions of fraud and coercion under the Act on Aggravated Punishment for Specific Economic Crimes.
Several South Korean celebrities, sports stars, and social media influencers have distanced themselves from Choi and Winnerz in recent months. This follows an anonymous post from investors on February 2 accusing Winnerz of operating a “multi-level scam” scheme. The allegations also rekindled debate about a token called Golden Goal (GDG), which some claim to be a “scam coin.”
Ongoing Complaints and Investigations
WNZ has been listed on international cryptocurrency exchanges, but several South Korean investors have filed complaints about the token with the Financial Services Commission (FSC). The FSC forwarded the case to the police for investigation.
Authorities believe that Choi was previously responsible for promoting GDG, which is suspected of being a crypto fraud scheme involving billions of Korean won. Police are also investigating two other complaints related to WNZ.
On March 28, police arrested the CEO of Golden Goal, surnamed Kim, and charged him with fraud-related offenses. The Seoul Southern District Prosecutors’ Office’s Virtual Asset Joint Investigation Unit, the country’s top anti-crypto crime division, began investigating Choi on related charges late last month.
Impact on the Crypto Market
News of the police raid caused WNZ prices to decline. South Korean celebrities, such as Choi Si-won from the group Super Junior and Cho Hyun-young, a former member of Rainbow, have denied involvement in the Winnerz Coin controversy since mid-February.
Implications for the Crypto Community
The police raid on Winnerz’s offices and the subsequent investigation into allegations of fraud and coercion underscore the need for greater scrutiny and regulation in the crypto industry. Such high-profile cases can have significant implications for investor confidence and market stability. It is crucial for both regulatory bodies and market participants to remain vigilant against potential scams and fraudulent activities in order to maintain trust and integrity within the cryptocurrency space.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
