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coinpedia 2025-01-10 16:47:17

K-pop’s Cube Entertainment CEO Accused of Misleading Investors in Crypto Scam

K-pop’s Cube Entertainment CEO Accused of Misleading Investors in Crypto Scam

The post K-pop’s Cube Entertainment CEO Accused of Misleading Investors in Crypto Scam appeared first on Coinpedia Fintech News Kang Seung-gon, the CEO of Cube Entertainment , is facing allegations of misleading investors in a cryptocurrency scheme linked to a digital token called “Nestree.” The accusations have prompted concerns among affected individuals, who are now considering legal action. Cube Entertainment, known for managing popular K-pop groups like Pentagon, ventured into the cryptocurrency space in 2022. The company invested about 100 million KRW (around $68,000) into Nestree Media Group, which owned the cryptocurrency tied to the token. Initially, the investment seemed promising, with the value of the token skyrocketing from 5 KRW to 50 KRW within a month. Many investors, encouraged by the company’s involvement, bought into the token. However, things quickly took a turn for the worse. Kang allegedly guaranteed that investors’ principal would be protected, but the value of the token plummeted by over 70% by the end of 2022. The decline left many investors with financial losses. Reports claim that Kong attempted to redirect them to other cryptocurrency opportunities, but denied the allegations and the guarantees made. Kang denied the claims that he and Cube Entertainment were involved in a scam. He said there was no promise to guarantee investments. He explained that Cube’s investment in Nestree was part of their move into blockchain business and they plan to keep working with Nestree. Kang also confirmed he invested in Nestree Coin before the company was founded, but he never made a profit and actually lost money. The situation is now drawing legal attention, as South Korean regulators and investors are calling for action. If proven guilty, Kang could face serious consequences, including imprisonment and fines under South Korea’s strict financial and market manipulation laws. Meanwhile, Cube Entertainment’s stock price has already taken a hit.

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