South Korean Police Arrest Suspects in Winnerz-linked ‘Scam Coin’ Case

cryptonews.com:

A suspected scam coin operator was arrested in Gimpo, Gyeonggi Province, South Korea – in a case that appears to be linked to the controversy surrounding the blockchain firm Winnerz.

According to YTN, Gimpo police charged an unnamed individual in their 20s with fraud. A second individual (also in their 20s) was also charged with “aiding and abetting fraud.”

Police withheld details about the individual from the press for legal reasons. But the individual charged with fraud (referred to as “A” by the South Korean press) was described as the “CEO of a cryptoasset-related company.

Officers also said that the firm in question “used celebrities such as a former national team soccer player” to promote a coin.

Earlier this week, Lee Chun-soo, a star of the 2002 World Cup, admitted that he spoke to operators of the Golden Goal (GDG) coin.

Lee said he spoke to GDG executives about a possible NFT collaboration in 2021.

GDG officials released photos of Lee Chun-soo in September 2021 in a bid to promote the project.

Investors in the project also said the GDG masterminds sent group chats claiming that “Lee Chun-soo [was] close” to “joining” GDG.

But Lee this week complained that the photos had been used without his permission or knowledge.

Police speaking about A’s arrest explained that investors were told they could “benefit from buying a token before it was listed on domestic exchanges.”

However, the token in question was never listed on a domestic trading platform. Investors said they were later blocked from withdrawing their stakes from a GDG-related platform. Police explained:

“A is accused of defrauding around 30 investors out of over $2.25 million. This individual began operating a virtual currency business in March 2021.”

Officers also