South Korean police have conducted raids on the offices of Winnerz, a sports-themed blockchain platform, as part of an investigation into allegations surrounding its WNZ token, which has been dubbed a “scam coin.”
According to Money Today newspaper, the Seoul Metropolitan Police Agency’s criminal task force announced on April 16 that they had searched and confiscated evidence from two locations.
The raids targeted a Winnerz office in Gangnam, Seoul, as well as the residence of the former Winnerz CEO, Choi Seung-jeong, on April 1. Police were granted a court warrant to conduct the searches based on suspicions of fraud and coercion under the Act on Aggravated Punishment for Specific Economic Crimes.
In recent months, various South Korean celebrities, sports stars, and social media personalities have distanced themselves from Choi and Winnerz following allegations of involvement in a “multi-level scam” operation, which originated from an anonymous post on February 2.
The controversy surrounding Winnerz and Choi has also drawn attention to another token named Golden Goal (GDG), which is alleged to be involved in fraudulent activities. Several South Korean investors have filed complaints about the WNZ token with the Financial Services Commission (FSC), prompting the regulatory body to refer the case to the police.
In addition to the FSC’s inquiry, police are investigating two other complaints related to WNZ independently. There are suspicions that Choi was previously involved in promoting GDG, described as a “suspected crypto fraud worth billions of KRW.”
The “scam coin” controversies have led to legal actions, including the arrest of Golden Goal CEO Kim on fraud charges on March 28. Furthermore, the Seoul Southern District Prosecutors’ Office’s Virtual Asset Joint Investigation Unit is probing Choi for potential fraud offenses.
As a result of the ongoing investigations and controversies, the prices of WNZ appear to have declined. K-pop stars such as Choi Si-won and Cho Hyun-young have publicly denied any association with the “Winnerz Coin controversy” since mid-February.
