TechFlow news — On January 10, according to The Block, Kang Seung-kwon, co-CEO and largest shareholder of South Korean K-pop giant Cube Entertainment, is accused of misleading investors into investing in the cryptocurrency Nestree. As reported by Korea Economic Daily, Cube invested 100 million won (approximately $68,000) in Nestree Media Group in March 2022. Following the investment, the price of Nestree token surged nearly tenfold within a month, reaching 50 won.
Victims claim that during the price surge, Kang promised principal protection, but later denied making such commitments when the Nestree token price crashed to single digits. The current price of Nestree has fallen to 4.9 won, and affected investors are considering legal action. Kang has denied the allegations, stating that the initiative was part of the company's blockchain business expansion plan.
Impacted by the controversy, Cube Entertainment’s Kosdaq stock closed down 1.9% on Friday to 14,450 won, marking a year-to-date decline of 7.4%. The company currently manages well-known artists including (G)I-DLE and Pentagon, and reported revenue of $109 million for the first three quarters of 2024.
