- Korean Cube Entertainment CEO Kang Seung-gon was accused of misleading investors.
- Victims are planning to take legal action against Kang for promoting “Nestree” token investment.
Co-CEO of VT and co-CEO of Cube Entertainment, Kang Seung-gon was suspected to be involved in a crypto scam. He was alleged of using Cube Entertainment for inflating a cryptocurrency called “Nestree”. While Kang denied all the accusations, victims are considering taking legal action against him.
As per the local news report by Market Insight, Kang invested 100 million won on Nestree Media Group in March 2022 in exchange for a 40% stake in the company. Kang is alleged to be involved in the Nestree scam, which is a pure pump-and-dump scam scenario.
Kang Seung-gon Says the Allegations are Groundless
One of the investors reported that Kang made them believe that people in the securities industry, Cube Entertainment officials, and private loan sharks believed his words and invested in Nestree. Another investor lost around 90% of his investment when Nestree’s value plunged.
Several investors reported that Kang encouraged them to invest in Nestree, saying, “I will guarantee the principal, so trust me and buy.” However, Kang denied these accusations saying they are “groundless”. He even claimed that he has also suffered a loss by investing in Nestree tokens and never made profit by selling at a high price.
Nestree Token Fell From 59 Won to 4.8 Won
Nestree Media Group is an IT blockchain company, with native “Nestree” tokens and also involved in NFTs. Being one of the largest shareholders of the firm. Its native Nestree token was listed on local Korean crypto exchanges such as Coinone and Bithumb, being accessible to Korean investors.
When the news of Cube Entertainment’s investment in Nestree Media Group came out, the Nestree token price increased substantially. It went from 5 won to 50 won within a period of one month in 2022. Nestree reached its peak value of 59 won on March 28, 2022 and dropped over 30% in less than a month. The token price’s downfall to single digits, by the end of 2022, is still continuing in 2025. Nestree token is trading at 4.83 won at press time, as per CoinMarketCap.
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