(Block Media Exclusive)

Investors who bought Fantom tokens are at a loss because these tokens fell 25 percent and have no way of recouping their investment at least for the next three months.

Confusing names also triggered legal a legal suit. The Fantom Foundation, a blockchain-based smart contract platform, Friday threatened to take legal action against the Fantom Korea for damaging the foundation. The Fantom Foundation said it has no relations whatsoever with the Fantom Korea.

It is estimated that investors have bought 20.1 billion won (about $18 million) in Fantom coins.

Investors said they found only after they bought the coins that they could not redeem the coins for the three months.

In its official statement, Fantom Korea said it is talking with the ‘Wanwei” (phonetical translation in Korean press statement) to help investors recoup their investment. Once Wanwei’s commitment is not honored, Fantom Korea will shoulder legal responsibility for the investors, its CEO said in the statement. However, it is unclear whether the statement is to be honored.

Wanwei is alleged to be an overseas sales agent for Fanthom tokens.

It is still unclear how investors came to know Fanthom tokens and how Fantom Korea sold Fantom tokens.  Not clear is the relations with Fantom Korea and Wanwei although they are known to be token sales agents.

Investors allegedly bought Fantom tokens as these tokens have the right to get Wanwei’s Ether.

A foreign investor named Quinn sent an email to the Block Media Thursday. In the email, he said, “From a buddy of mine: A lot of people in Korea were buying allocations they thought were real but weren’t. Fantom has nothing to do with them. Some of the people who got scammed even turned up to the Fantom office yesterday and got angry. I have heard total about people got scammed could be almost $18 million. Always exercise due diligence and seen this happen again and again.”

The police are to start an investigation on the alleged Fanthom scam.