Aiming for Reputation to Build Trust
"Investment Risks Must Be Clearly Recognized"
Famous domestic figures such as YouTubers and athletes are facing allegations of being involved in ‘scam coins’ (cryptocurrency fraud). Although most of them have denied any connection, experts point out that just the mention of well-known personalities’ names can increase anxiety among individual investors, potentially influencing their investment decisions.
Recently, a controversy erupted when photos surfaced showing celebrities, comedians, and YouTubers posing with individuals related to the ‘Winners Coin,’ which has been accused of being a scam coin. Regarding these allegations, YouTuber Oh King (real name Oh Byung-min), who has one million subscribers, posted an apology video stating, “I have invested in Winners, but I do not know the structure of the cryptocurrency business.”
Jo Hyun-young, a former member of the idol group ‘Rainbow,’ also addressed rumors linking her to Cheongnyeon Pay, one of the scam coins, saying, “I am completely unrelated,” and added, “I did not expect Cheongnyeon Pay to be connected to fraud.” Former national soccer player Lee Cheon-soo also responded to suspicions that the company issuing soccer shoe non-fungible tokens (NFTs) under his name was fraudulent, explaining, “I only allowed the use of my portrait rights during the event period.”
Professor Seo Kyung-deok of the Department of Creative Convergence at Sungshin Women’s University pointed out, “Although the relationship between the celebrities and the companies involved in this controversy has not yet been clearly revealed, it is certain that the appearance of famous personalities inevitably attracts public attention.”
This is not the first time that the names of famous figures have been mentioned in large-scale investment frauds. The Wannabe Group previously recruited actor So Ji-sub as an advertising model to sell NFTs, attracting tens of thousands of investors. At that time, the Financial Supervisory Service warned that it was highly likely a Ponzi scheme, where new investment funds were used to pay existing members. In response, So’s side demanded the termination of the advertising contract with the Wannabe Group.
Last year, during the ‘Ra Deok-yeon stock manipulation scandal,’ which saw a market capitalization of 8 trillion won vanish in an instant, singer Lim Chang-jung was also suspected of involvement. Lim denied the allegations, stating, “I am also a victim.”
According to an analysis by the Virtual Asset Investigation Division of the Financial Supervisory Service, 1,504 reports of virtual asset-related investment fraud were filed between June 1 and December 31 of last year. This is a significant increase compared to previous years, with 119 reports in 2021 and 199 in 2022 of similar virtual asset-related investment fraud cases.
Professor Park Kyung-seo of Korea University’s Department of Business Administration said, “Some investors think that if celebrities with a strong reputation invest, it must be trustworthy.” He added, “Since contracts with specific celebrities and others for advertising are private agreements, it is difficult to prevent them, but individual investors should be encouraged to fully understand the risks of coins before investing.”
As similar types of investment fraud crimes continue, financial authorities are also regularly providing consumer information and investor precautions. A Financial Supervisory Service official stated, “As new types of voice phishing continue to emerge, government-wide efforts have raised public awareness,” and added, “We must also strive to improve awareness of these kinds of investment frauds.”
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