K-pop sensation Park Gyuri, a member of the well-known girl group KARA, is at the center of another crisis in the cryptocurrency industry. The Pica Coin scam, which is said to have stolen $24 million from more than 14,000 investors in South Korea, has gotten a lot of attention because Gyuri’s ex-boyfriend, Song Ja-Ho, is the major suspect. The plan, which involved selling bogus paintings and manipulating the market, has made people wonder if celebrities are involved in crypto businesses.
Park Gyuri served as the Chief Communications Officer and Advisor for Pica Coin, a project that marketed itself as a cryptocurrency for art. Although she held official duties, Gyuri denies any wrongdoing, claiming that she was unaware of the fraud.
Gyuri says she worked as a paid curator for art shows and made about 40 million won ($29,000). She says she didn’t know anything about the bitcoin deals. She also said that her picture was used in the project’s whitepaper without her permission and that she lost $43,566 when Pica Coin was taken off the Upbit exchange in June 2021.
But Seong Hae-joong, the CEO of Pica Coin, says that she got 60 million won ($43,086) from Song in December 2021, which is backed up by leaked chat screenshots.
The Pica Coin controversy is about claims that Song Ja-Ho stole money by making fake art investments and changing prices. He was charged with fraud, breach of trust, and breaking the Capital Markets Act in July 2023.
Prosecutors say that Song asked others to invest in fake artworks, which is fraud. Park testified as a witness in the Seoul Southern District Court. She said she didn’t know much about crypto and didn’t have much to do with it. The trial is still looking into her role, but she may not be able to attend because she is now out of the country.
This case brings attention to the bigger problem of celebrities promoting cryptocurrencies, often without being clear about their reasons. Celebrities like Kim Kardashian and Tom Brady have been sued for pushing bogus tokens that tricked supporters into making hazardous bets.
The Pica Coin controversy shows how risky celebrity-backed crypto projects may be, since the star power can make them more appealing and risky, putting investors at risk of big losses.
