Fake Security Tokens Linked to HD Hyundai Oilbank in Circulation
HD Hyundai Oilbank, one of South Korea’s leading refiners, said Wednesday that a counterfeit security token dubbed “HOBT” claiming affiliation to the company has been circulating online. The token is allegedly based on old stock certificates under the company’s former name, Hyundai Oil Refinery, as the underlying assets, though the company had changed its name to HD Hyundai Oilbank back in 2002. Both the token and the underlying asset are invalid and have no relation at all to HD Hyundai Oilbank, the company emphasized, so investors must exercise caution.
Fraudulent promotion
Entities that are giving away or selling HBOT tokens are attracting investors by promoting a one-on-one exchange of the tokens for old Hyundai Oil Refinery stock certificates. They are also promising to grant shareholder rights through blockchain technology as well as interest payments of 4% every month for a total of 24% over six months.
Fraudulent activities like these have recently been on the rise following the legalization of security tokens and the formal issuance of a select few tokens.
Investigative measures
The Incheon Metropolitan Police is currently conducting an investigation into the case. Notably, the old Hyundai Oil Refinery stock certificates that the involved entities are claiming to be underlying assets have been proven to be fake in over ten court rulings. Although owners of these old stock certificates had filed lawsuits against the company related to shareholder registration renewals since the late 2000s, all of them had lost their cases.
Past events resurfacing
This recent circulation of the forged HOBT tokens is attributed to employees of a disposal company who pocketed the invalid stock certificates and certificate papers, rather than disposing of them as they were required to do.
In January 2002, HD Hyundai Oilbank had hired a company to dispose of documents — including those related to the old stock certificates — that had lost their validity during the process of attracting and increasing foreign capital.
“In May of that year, we started receiving frequent inquiries about the stock certificates. We filed a legal complaint against the employees and conspirators of the disposal company for illegally distributing the certificates (including the stock certificate papers), and they were subsequently punished for theft and fraud,” the company explained.
