Cryptocurrency Company That Seungri Modeled For Is Facing Lawsuit

Many investors had invested in the company because Seungri was its face.
Many investors had invested in the company because Seungri was its face.
(Photo: BIGBANG/Facebook)

Sex scandals that rocked the South Korean music world have crushed the country’s entertainment stocks as police investigate the involvement of celebrities in alleged criminal conduct. K-pop star Seungri (real name Lee Seung-Hyun) was accused of providing prostitutes to investors in a club he owned, and it seems that this scandal had caused a domino effect.

The former BIGBANG member shocked everyone when he announced that he would leave the entertainment industry after his alleged sex bribery case swept the country. Now, a cryptocurrency company, Nupay, that Seungri modeled for is facing a lawsuit for fraud.

Being a part of the hugely popular boy band BIGBANG, and known for his successful business endeavors, many investors had invested in Nupay because Seungri was the face of the company. According to reports, the representative of Nupay Korea has been sued by investors who were not repaid their investment.

Last November, Nupay Korea signed an advertisement model contract with Seungri and even completed the advertisement filming under support from YG Entertainment to launch in March. When an advertisement model for a company becomes involved in a scandal, the company generally gets rid of the model, or sometimes the situation leads to a dispute over penalty fees.

As news of Seungri’s involvement in the Burning Sun gate broke out, Nupay Korea demanded a full refund from YG Entertainment for the deposit they paid, and they had reached a partial agreement. However, the representative of Nupay Korea continued to attract investment by presenting the conditions of the advertisement contract with Seungri and YG Entertainment and ultimately, was recently sued by a corporate investor.

The representative of Nupay Korea verbally notified the investor that they should terminate their contract since Seungri’s contract didn’t go through. Moreover, he said that YG Entertainment would be refunding the modeling fees so once he receives this, he will repay the investor. Nonetheless, it is understood that the two companies did not reach a full agreement.

Seungri was alleged to have arranged sex services for Japanese investors in 2015, together with his business partner Yoo In-suk, a former head of Yuri Holdings. He is also suspected of paying for prostitution services in 2015.

The scandal comes ahead of Seungri’s mandatory military service, which all able-bodied South Korean men are required to complete. He denied procuring prostitutes when media said he had been involved in "sex bribery."

The investigation into his alleged bribery case is now being closed. However, the case will be reinvestigated if further evidence is revealed in the future.

© 2019 Business Times All rights reserved. Do not reproduce without permission.
Sign Up for Newsletters and Alerts