'Proxy Trading' Ads on Every SNS
Promotion of 'Kokplay' Amid Scam Controversy
Annual Damage Exceeds 3 Trillion Won... Expected to Increase
"From 8 million won to 59 million won!" Last month, a man in his 50s, Mr. A, saw an advertisement on Instagram. It claimed that although cryptocurrency prices were falling recently, if you just entrusted your money, you could avoid the price drop and even multiply your funds several times. After seeing posts about people realizing profits, he decided to deposit money, but it turned out to be a scam. Mr. A said, "It might be considered a small amount, but I lost 5 million won," adding, "The losses in cryptocurrency have been severe, so I think I couldn't make a proper judgment."
As of the 24th, searching for ‘coin investment’ on Instagram yields 504 related posts. Most of them promote ‘proxy trading’ that helps realize profits without worry despite the cryptocurrency price decline. They advertise that it can be tried with small amounts like a side job. On KakaoTalk open chat rooms, searching for ‘cryptocurrency’ brings up countless chat rooms related to investment advice or proxy trading.
When contacting the KakaoTalk chat room addresses listed in Instagram posts, they introduce a specific program that supposedly generates profits. They emphasize that the program has no errors, so there is no risk of losing the principal, and that one can earn up to 10 times the amount. They also explain that many people have already earned living expenses through proxy trading.
The ‘Kokplay’ platform, which was involved in a controversy over disappearing with users’ money, is also easy to find. Kokplay is a blockchain digital content platform structured to receive new members’ joining fees by entering a referral code upon registration. Since it increases investors through acquaintances, many victims claim it is a multi-level scam. Some victims have appealed that Kokplay officials said they would list on domestic cryptocurrency exchanges, but there has been no news at all.
Cryptocurrency scam damages are increasing exponentially. According to data from the office of Yoon Chang-hyun, a member of the People Power Party, the amount of damage from cryptocurrency-related crimes exceeded 3 trillion won from January to November last year. This is more than 14 times the damage amount of 213.6 billion won in 2020 alone.
Professor Hong Ki-hoon of the Department of Business Administration at Hongik University said, "Until last year, the cryptocurrency market was on the rise, so many people were exposed to related scams," adding, "If cryptocurrency prices remain sluggish this year, the bubble may burst, and the scale of scams could increase even more than last year."
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