Former KOK Coin Ponzi Scheme Participants Allegedly Continue Operations at New Crypto Firm

The KOK Coin Ponzi Scheme Background

The KOK Coin fraud case, which operated across multiple countries in the 2020s, reportedly defrauded approximately 570,000 individuals worldwide of over 2.5 trillion yen according to prosecutors' estimates. The scheme operated as a multi-level marketing fraud disguised as cryptocurrency investment, offering rewards to those who referred new participants.

Bitoz's Corporate History and Transformation

Investigation reveals that Bitoz was originally established in March 2022 as "Uto Holdings," a manufacturing company engaged in precision machine tool production and mining development. The company underwent dramatic changes in August 2024 when it changed its name to "Away," followed by another name change to its current "Bitoz" in September 2024.

While the legal registration date shows March 2022, the company's current name and electronic finance/payment service operations were only established between August and September 2024. During this transformation, the entire management was replaced and all manufacturing-related business objectives were removed from corporate documents.

Alleged Connections to Fraud Scheme Participants

Individuals reportedly working at Bitoz previously held senior positions at Médium, a company central to the KOK fraud case. According to corporate registration records, one individual served as Médium's representative director and CEO from November 2022 to March 2023. Another held a department management position at Bitoz and is now reported to have left the company.

At Bitoz Labs, Bitoz's affiliated company, a key executive confirmed to have connections to Médium also serves in management. This person held the position of representative director at Médium in 2023.

Suspicious Financial Institution Partnerships

Bitoz appears to be involved in a stablecoin (cryptocurrency pegged to specific assets) initiative with Hana Financial Group, a major Korean financial conglomerate. Multiple reports suggest that participating companies were introduced to Hana's initiative through a specific law firm's specialist, with Bitoz's memorandum of understanding (MOU) being actively promoted during these introductions.

Bitoz's Defense and Remaining Concerns

Bitoz has issued the following statements:

• The company is not new, having been legally established in 2022
• It has no connection to KOK-related funds
• The individuals in question did not hold KOK-related positions
• Criminal background checks revealed no issues

However, detailed examination of the company's evolution shows that the 2024 name change and management replacement effectively constituted the establishment of a new operating structure.

Red Flags and Prevention Strategies

Warning Signs:

• New companies involving individuals from previous fraud schemes
• Rapid corporate restructuring and management turnover
• Emphasis on partnerships with major financial institutions
• Investment products featuring referral-based reward systems
• Undisclosed information or exclusive investment opportunities

Self-Protection Measures:

• Verify corporate registration records, including establishment dates and management changes
• Cross-check company's past business activities against current operations for inconsistencies
• When partnerships with major financial institutions are claimed, verify directly with the institutions
• Exercise extreme caution with investment opportunities introduced by personal referrals
• Avoid schemes that emphasize limited-time or exclusive opportunities
• Research the background of company executives before investing

Where to Report

• Financial Supervisory Service (FSS) - Korea's financial regulator
• Cyber Crime Investigation Division, National Police Agency
• Local consumer protection agencies
• Your country's cryptocurrency regulatory authority