The CEO of Cube Entertainment, a major Korean entertainment company, has been charged with cryptocurrency investment fraud.

PANews reported on January 10 that according to The Block, the co-CEO of Cube Entertainment, a large Korean entertainment company, caused controversy for misleading investors about investing in local cryptocurrencies. He reportedly lured investors into investing in the cryptocurrency by falsely promising returns.

Kang Seung-kon, the largest shareholder of Cube Entertainment, allegedly encouraged acquaintances and colleagues to invest in Nestree tokens issued by South Korean blockchain company Nestree Media Group. In March 2022, Cube invested 100 million won in Nestree. Subsequently, the Nestree token price surged from 5 Korean Won to 50 Korean Won within a month as investors looked forward to cooperation with Cube. However, as Nestree's value fell, investors demanded a return of principal from Kang Seung-kon. He denied ever promising guaranteed returns and provided other cryptocurrency investment information. Nonetheless, the Nestree token price fell from a peak of 59 won to 39 won on local exchange Bithumb, falling further to single digits at the end of 2022 and currently trading at around 4.9 won.

Kang Seung-kon has denied the accusations, insisting that he never advised others to invest in cryptocurrencies in such a guaranteed manner. Cube said it will continue to work with Nestree as part of its blockchain expansion plans. Nestree investors are considering taking legal action against Kang Seung-kon to recover their losses.