The CEO of Cube Entertainment, a major K-Pop agency, is facing serious accusations of involvement in a cryptocurrency scam. This involves allegations of using his company’s influence to artificially inflate the price of a cryptocurrency, then encouraging others to invest.
The Allegations
Kang Seung-gon, Cube Entertainment’s CEO and majority shareholder, is accused of orchestrating a scheme centered around Nestree (EGG), the cryptocurrency of Nestree Group Media (NMG). In 2022, Cube invested a significant sum (around $67,834 USD) in NMG, acquiring a 40% stake. Following this investment, the price of EGG skyrocketed—increasing tenfold within a month.
However, this dramatic rise was short-lived. The price of EGG crashed soon after, leaving many investors with substantial losses. The cryptocurrency’s value has plummeted since then, currently trading at a fraction of its peak price. NMG’s core business is reportedly largely defunct, although their online store remains open, albeit with limited inventory.
The accusations against Kang include using his position to persuade associates and acquaintances to invest in EGG, allegedly guaranteeing their initial investment. Several investors claim Kang promised to protect their principal, leading them to invest heavily. These investors now claim significant losses and are considering legal action.
Kang’s Response and the Aftermath
Kang denies all allegations of wrongdoing, stating that neither he nor Cube Entertainment engaged in any scam. He maintains that the investment in NMG was a legitimate business decision as part of Cube’s expansion into blockchain technology. He also claims to have lost money on his personal EGG investment, refuting claims of profiting from the price surge.
Despite his denial, several investors are reportedly preparing to sue Kang, seeking compensation for their losses. The situation remains tense, with the legal ramifications still unfolding.
