South Korea cracks down on crypto market manipulation

South Korea referred two crypto market manipulation cases to prosecutors, involving large-scale supply control and artificial trading. Investors are urged to avoid chasing unexplained price surges.

South Korea’s Financial Services Commission has referred two suspected cases of cryptocurrency market manipulation to prosecutors. In the first case, an individual allegedly invested tens or hundreds of billions of won to acquire nearly half of a token’s global circulating supply. This person is accused of manipulating prices on overseas exchanges and then profiting by selling on domestic platforms, resulting in significant losses for South Korean investors. The second case centers on suspected artificial trading in low-liquidity tokens. Here, a suspect reportedly used API access and high-frequency trading to create the illusion of active trading, inflating prices before selling off their holdings for profit. The regulator has warned investors to be cautious of digital assets that experience sudden, unexplained surges in price and trading volume. Authorities also announced plans to strengthen disclosure requirements and enhance market warning systems.