FSS Governor Lee Chan-jin Pledges to Check Vitoz Ties to Financial Firms Over KOK Coin Fraud Allegations

Lee Chan-jin, governor of South Korea’s Financial Supervisory Service, said he would verify cooperation between blockchain company Vitoz and domestic financial institutions after allegations that the company was tied to the KOK Coin fraud case.

Lee made the remarks during an Oct. 19 parliamentary audit by the National Assembly’s Political Affairs Committee in Seoul, after Democratic Party lawmaker Min Byung-duk asked regulators to examine claims that people linked to the KOK Coin case were working at Vitoz and to review the company’s partnerships with financial institutions. Lee replied, "I will check and let you know."

The KOK Coin case is a large-scale multilevel crypto fraud in which investors were recruited from 2019 with promises of principal protection and high returns. Prosecutors have identified 570,707 victims in South Korea and abroad, with total losses of 2.5759 trillion won ($1.86 billion). Police have referred 66 people in connection with the case to prosecutors.

Min said at the audit that people involved in the KOK Coin case were allegedly employed at Vitoz, a blockchain company in Seoul’s Gangnam district. He cited individuals identified only by their surnames, including Jeong and Park, and questioned why people tied to the case were continuing corporate activities while victims had yet to receive compensation.

He also said Vitoz had signed memorandums of understanding with Hana Financial TI, iM Bank, Hecto, Danal, Eugene Investment & Securities and Jeonbuk Bank, arguing that those ties to the financial sector needed to be examined. It has not been confirmed, however, that the agreements themselves were related to the KOK Coin fraud case.

Min said victims were still awaiting court rulings without compensation and urged financial authorities to establish the facts. Lee’s pledge has drawn attention to whether regulators will examine both the alleged employment at Vitoz of people tied to the case and the company’s cooperation with financial institutions.