South Korean Authorities Detain Individuals in Connection with Winnerz-related ‘Fraudulent Cryptocurrency’ Investigation

An alleged operator of a scam coin was apprehended in Gimpo, Gyeonggi Province, South Korea, in a case seemingly connected to the controversy involving the blockchain company Winnerz.

As reported by YTN, Gimpo police have charged an unnamed person in their 20s with fraud. A second individual, also in their 20s, has been charged with “aiding and abetting fraud.”

‘Scam Coin Operator’ Faces ‘Fraud’ Charges

Authorities have withheld specific details about the individual for legal reasons. However, the person charged with fraud (referred to as “A” by South Korean media) has been identified as the “CEO of a cryptoasset-related firm.”

Law enforcement officials indicated that the company in question “utilized celebrities, including a former national team soccer player,” to promote a coin.

Soccer Star Claims Unauthorized Use of Images

Earlier this week, Lee Chun-soo, a notable player from the 2002 World Cup, acknowledged that he had discussions with operators of the Golden Goal (GDG) coin.

Lee mentioned that he had conversations with GDG executives regarding a potential NFT collaboration in 2021.

In September 2021, GDG representatives released images of Lee Chun-soo to promote the initiative.

Investors associated with the project also reported that the GDG organizers sent group messages asserting that “Lee Chun-soo [was] close” to “joining” GDG.

However, Lee expressed this week that the images had been utilized without his consent or awareness.

Police, commenting on A’s arrest, stated that investors were informed they could “gain from purchasing a token before it was listed on domestic exchanges.”

South Korean soccer star Lee Chun-soo speaking in 2023. (Source: Lee Chun-soo/YouTube)

Nevertheless, the token in question was never made available on a domestic trading platform. Investors reported that they were subsequently blocked from withdrawing their investments from a GDG-related platform. Police elaborated:

“A is accused of defrauding approximately 30 investors out of more than $2.25 million. This individual commenced operations of a virtual currency business in March 2021.”

Authorities also noted that the football player in question “reportedly stated that he had no involvement with the virtual currency issued by this company.”

Police previously attempted to arrest A last year, but a court denied their request for an arrest warrant.

However, officers were successful in a more recent attempt, likely influenced by Lee’s remarks and the growing scrutiny surrounding the so-called Winnerz “scam coin” initiatives.

Winnerz manages the WNZ coin, which is available on international exchanges. The company is involved in various sports ventures and blockchain-related activities.

WNZ prices over the past 24 hours. (Source: CoinMarketCap)

Company at Center of Media Storm Denies Misconduct

Winnerz has refuted any allegations of misconduct, asserting that it is not connected to various Winnerz-related “scam” tokens.

However, South Korean internet users have alleged that A is Choi Seung-jung, an individual believed to be linked to Winnerz. Choi is thought to have orchestrated the GDG project.

Police representatives stated they “plan to finalize” their investigation into A and the second suspect “soon.”

A and the second individual were released pending a court hearing, but authorities indicated their intention to forward the case to the prosecution.

Celebrities Distance Themselves

An anonymous message, shared by individuals claiming that Winnerz was running a “multi-level scam,” gained traction on February 5. The investors stated they had reported their case to the police.

Additionally, YouTuber Oking released a video last week in which he confessed to making anonymous investments in Winnerz.

Japan’s Prime Minister Fumio Kishida is considering visiting South Korea on March 20, broadcaster Fuji TV reported https://t.co/HxIEIQ4VZ5

— Reuters (@Reuters) February 14, 2024

Also this month, regulators suggested they might investigate the 2023 NFT-powered concert ticket sales of K-pop star and “Gangnam Style” singer PSY.

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