Kakao advised investors against swindlers who claim to sell coins of its Klaytn blockchain projects.
The warning came out Thursday after online sites post notices that they are selling Klaytn tokens.
Orbs publicized the sale of Klaytn coins. It tells people to invest its cryptocurrency mining coins before buying Klaytn coins. Orbs claimed that it held an unspecified amount of Klaytn coins.
However, Kakao, the parent company of the Klaytn blockchain project, said it had not sold Klaytn tokens to Orbs. It said that it had a technical partnership agreement with Orbs.
Orbs faces an investigation because it relies on pyramid sales methods. Without registration, any firm or people making pyramid sales face legal action.
Through its subsidiary, South Korea’s most popular online chatting site Kakao has been preparing to launch a blockchain-based platform. The project is underway through a global alliance with foreign partners.
