The end of a 'jackpot coin'... down to 200 won in a year, a 100-fold loss

The end of a 'jackpot coin'... down to 200 won in a year, a 100-fold loss.

Investment solicitation for several years across Seoul... recommendation for unlisted coins

Investors hesitate to report, holding onto 'hope'... continues despite police investigation

"Currently, Coin A is less than 100 won, but you can sell it for 500 won starting at the end of this month. If you wait until it's listed, it might even reach 1,000 won."

On the afternoon of the 6th, when the daytime high reached 39 degrees Celsius, a B company investment briefing held in a certain part of Seoul was filled with the fervor of about 10 middle-aged and elderly investors who braved the sweltering heat.

Company B has been issuing and selling unlisted coins for several years and recently had branches in various parts of the city, gathering investors 1-2 times a day for 'education'.

The reporter attended the briefing after receiving a tip that a company that had previously caused controversy by selling coins promising high returns was issuing new coins and soliciting investments without any sanctions.

◇ Soliciting investments by promoting overseas listing and dividends... "Listed on 5 exchanges next month"

Ms. C, a middle-aged woman who served as a lecturer at the briefing, explained that she herself invested in Coin A believing its price would rise, and had accumulated 300,000 Coin A by reinvesting the weekly dividends received in Tether (USDT).

She also recommended, "Invest and earn at least your living expenses," stating that Coin A is scheduled to be listed on five overseas virtual asset exchanges next month and that they are undertaking new projects of international interest.

Excluding the reporter, all attendees at the briefing were middle-aged and elderly. They frequently asked the lecturer about the business progress, having attended several briefings, and also protested that the coin price had plummeted contrary to the company's promises.

When one investor complained, "They said it would be listed in August, but now they're saying September or October. It'll soon be next year," Ms. C, as if accustomed to it, persuaded them, "Just wait a little longer."

◇ Previously sold coin delisted... 98% plunge from a year ago

This company is the same one that caused controversy several years ago by holding investment briefings in Seoul and selling unlisted coins in a similar manner.

The company claimed to have created the world's first blockchain real economy-based coin trading platform, attracting investors from various regions by promising regular dividends and high returns.

Coin D was actually listed on Gopax, a Korean Won virtual asset exchange, on the back of the hopes of many investors. According to virtual asset analysis firm CoinMarketCap, its price per coin even surged to 20,976 won in September last year.

However, the company proceeded with its business without a Virtual Asset Service Provider (VASP) license, receiving a deposit suspension notification from its transaction bank, Shinhan Bank, and Gopax terminated trading support due to potential legal violations.

As of the 7th, Coin D was trading in the 200 won range, a 98% plunge from its highest price. Despite this, it was confirmed that the company is still soliciting investments by offering to exchange Coin D for newly created tokens.

Although numerous investors have filed lawsuits against this company, with cases assigned to several police stations in Seoul, many investors are reportedly still hesitating to sue, unable to give up hope of recovering their investment.

Mr. E, who operates a group chat for victims of Coin D investment, told Yonhap News, "If the company had completely gone bankrupt or there was no hope, we would actively pursue lawsuits, but there's still a possibility." He added, "Most people are of the opinion to wait until this month."

◇ 394 coins delisted since 2022... but the business continues

Dozens of coins are delisted, or have their trading support terminated, annually on Korean Won virtual asset exchanges.

According to data submitted by Democratic Party lawmaker Min Byung-duk of the National Assembly's Political Affairs Committee from the Financial Supervisory Service on the 9th, 394 coins had their trading support terminated on Korean Won virtual asset exchanges from 2022 to May of this year.

The most common reason for delisting was project risk (155 cases), followed by investor protection risk (108 cases), market risk (56 cases), technical risk (50 cases), and others (25 cases).

It is presumed that some of these coins were solicited for investment in a manner similar to Coin D. It is difficult to prevent issuers from issuing new coins and gathering investors again even after trading support is terminated.

During the several years that Company B sold unlisted coins, reports and complaints were filed with relevant agencies such as the police and the Financial Supervisory Service, but it is understood that there have been no effective sanctions to completely block their business activities.

Experts analyze that the scale of fraud damage involving the sale of unlisted coins, promoted with high returns and false information, is increasing globally, and it is difficult to eradicate because their investor solicitation subtly straddles the line between legitimate investment advice and illegality.

Kwon Jun-hyuk, head of Chainalysis Korea, said, "Regulations must be clarified to clearly distinguish between legitimate token issuance and fraudulent projects," adding, "This will provide a legal basis for law enforcement agencies to take decisive action."