South Korean K-pop label Cube Entertainment CEO Kang Seung-gun is suspected in organizing a fraudulent scheme with cryptocurrency and deceiving investors.
According to journalists, the businessman encouraged his friends and colleagues to invest in the Nestree cryptocurrency (EGG), issued by the Nestree Media Group blockchain project. In addition, Kan allegedly guaranteed all participants a return on their investments.
In the spring of 2022, Cube Entertainment invested 100 million Korean won (about $80,000) in the crypto project. Following the news of the investment, the price of Nestree increased 10-fold within a month, from 5 to 50 won (from $0,0034 to $0,034).
However, at the end of 2022, the coin's value fell again to 5 won. Investors demanded that Kang reimburse their losses as promised. However, Kang Seung-gun said that he never promised anything like that and offered alternative investments that would help recoup the unsuccessful investments.
The businessman's answer did not satisfy the investors, and now they are planning to hold Kang Seung-gon accountable and are preparing lawsuits against him.
