Many alleged intermediaries are pitching the crowd sale coins as cryptocurrencies are on a recovery path. However, investors need to be careful.

In Naver blogs and Kakao chatting sites, you can find many advertisements on the crowd sale of Klaytn tokens. However, the Ground X, Kakao’s blockchain subsidiary, announced Thursday all are fake.

An alleged middleman for Ground X, surnamed Kim, alleged that he got commissioned to pre-sale Klaytn tokens. He added that investors got 100 refunds if they want after buying Klaytn tokens through a crowd sale.

He had been under police investigation since last year for his fraudulent sale of Bithumb’s BXA tokens, other tokens linked to blockchain projects such as Link, Phantom, and Nex.

The Block Media asked him to show contracts made between him and Ground X. But he said the document is confidential.

Investors might be misled into buying Klaytn coins through the Kakao chatting rooms. Anyone can open Kakao chatting rooms. Although Kakao runs the chatting room, it is not an official communication site for Kakao, the parent company of Ground X.