'Cock Coin' suspected of multi-level fraud worth trillions of won... Legal judgment ‘reduction’

Almost two years after the indictment, the first trial... Main culprit released on bail, investigation suspended for fugitive abroad

Some stakeholders in the blockchain business... Victims urge recovery of crime proceeds

(Seoul = Yonhap News) Reporter Park Soo-hyun = While the 'KOK Coin Incident', known as a multi-level coin fraud worth trillions of won, has remained unresolved for several years, some officials have reportedly entered into a new business.

According to the virtual asset industry on the 8th, nearly two years have passed since Mr. Kim, former chairman of the Medium Foundation and an official of 'Kok Coin', was handed over to trial, but there has been no first trial ruling.

COK Coin officials are suspected of swindling trillions of won worth of investment funds by soliciting investments in a multi-level manner from 2019 to 2023 under the lure of guaranteeing principal and generating high profits.

They promoted that Kok Coin, which was not listed on the domestic virtual asset exchange, could be used on digital platforms for consuming various contents such as movies, games, and webtoons, but in reality, the police found that there was no business entity.

The Medium Foundation is suspected of taking over the Kok Coin issuer and continuing the fraud.

It is estimated that there are more than 570,000 victims and the amount of damage is at least 2.5 trillion won.

Regarding Kok Coin, Mr. Kim and six other people involved are being tried in Ulsan District Court as two cases were merged on charges of fraud under the Aggravated Punishment for Specific Economic Crimes Act.

According to the indictment, Mr. Kim, along with his accomplices, is suspected of collecting investment funds worth 2.244 trillion won by deceiving 485,071 victims from April 2021 to July 2023.

Separately indicted accomplices are accused of collecting 2.5759 trillion won worth of money from 570,707 victims from October 2019 to July 2023.

According to data submitted by Min Byeong-deok of the Democratic Party of Korea, a member of the National Assembly's Political Affairs Committee, from the National Police Agency, since the Ulsan Metropolitan Police Agency began a pre-booking investigation (internal investigation) in 2022, 77 people involved have been booked and 66 people have been sent to the prosecution by September of last year.

The investigation of the 11 people excluded from the transfer was suspended due to reasons such as fleeing overseas.

As the trial dragged on, Mr. Kim was released on bail, and the whereabouts of the overseas fugitives are unknown.

The Medium Foundation is being investigated by the Gyeonggi Southern Police Agency. The police initially received the complaint in November 2023 and did not forward it in September of last year, but the victims' group reconsidered.

Kok Coin victims held a rally in front of the police headquarters in Seodaemun-gu, Seoul on the 2nd and called for punishment of those involved and recovery of crime proceeds.

Jin Eun-ja, a representative of Kokcoin victims, said, "We have waited (for punishment) for over four years," and appealed, "Please trace where the victims' money went to the end, and if there is someone responsible, please hold them accountable according to the law."

While the legal judgment was delayed, some COK Coin officials made a 'resurgence' as executives at a blockchain technology company in Gangnam, Seoul.

The company was also known to the media as having signed business agreements (MOUs) with banks, securities firms, and fintech companies.

An official in the virtual asset industry said, “People from COKCOIN have created a blockchain company, and there are many different opinions regarding the business.”