ZKsync’s 1,000% Upbit surge sparks Korean probe

South Korean regulators are probing ZKsync after a 1,000% Upbit price surge and crash, suspecting manipulation during exchange maintenance. Authorities are reviewing trading activity for possible violations.

South Korean regulators have initiated investigations into the ZKsync token following an extraordinary price surge of up to 1,000% on the Upbit exchange. The token’s value spiked from around $0.023 to $0.24 within hours, coinciding with scheduled maintenance on Upbit, before rapidly returning to previous levels. Trading volumes on Upbit soared, significantly outpacing those on other exchanges. Authorities suspect the volatility may have resulted from suspicious trading activity, such as the use of "buy walls" to artificially boost demand. The Financial Supervisory Service and the Virtual Asset Investigation Bureau are gathering documents and monitoring the situation. The review could escalate into a formal investigation. South Korea has deployed AI-powered tools to detect market manipulation, and violations of virtual asset protection laws can lead to severe penalties, including imprisonment and heavy fines.