South Korean authorities are seeking the extradition from the United States of so-called Mr. Han, the mastermind behind the KOK token scam that defrauded Korean investors of 4 trillion won (about $2.89 billion).

According to law enforcement, the scam began in September 2019. The suspect, known as Mr. Han, promised investors a large return on their investment. After reaching a peak of $7 in 2022, the KOK price plummeted to $0.01. Then, token trading ceased altogether — the KuCoin crypto exchange, which accounted for more than 90% of KOK trading volume, announced the delisting of the token. The exchange cited KOK’s low liquidity and legal violations by the project team as the reason.

Losses for Korean investors alone who invested in the token are estimated at $2.89 billion. However, the scam has spread beyond South Korea, as losses have also been reported by US and Japanese citizens. Police suspect that Mr. Han is the main creator of the KOK scheme, and that he organized a similar scam in China in 2018.

Mr. Han was arrested in the United States in early 2024. South Korean and U.S. authorities are negotiating his return to his homeland. The case will be heard in the Las Vegas Immigration Court, where the issue of deportation of the accused will be decided. He has already hired a lawyer and intends to contest a potential return to South Korea.

In April, South Korean authorities tightened requirements for listing altcoins on local trading platforms. The country had previously introduced life imprisonment for theft of digital assets on an especially large scale.