South Korea probes 40+ crypto manipulation cases
South Korea’s Financial Services Commission probed more than 40 alleged crypto market manipulation and fraud cases since July 2024, referring 30 to investigators and naming 25 suspects.
South Korea’s Financial Services Commission (FSC) investigated more than 40 suspected cases of unfair crypto trading over the past two years, referring 30 of those cases to investigative agencies and identifying 25 suspects.
The inquiries began after the Virtual Asset User Protection Act took effect in July 2024. The FSC said the cases involved activities such as market manipulation, wash trading and fraudulent crypto transactions.
The commission reported average unlawful gains of about 1.4 billion Korean won per case, roughly $940,000. The FSC did not provide details on individual cases or the identities of the 25 suspects.
The Virtual Asset User Protection Act requires virtual asset service providers to separate customer deposits and digital assets from corporate holdings and to hold client deposits in banks. The law also broadened the FSC’s powers to inspect and supervise virtual asset service providers and to pursue suspicious activity that harms users or market integrity.
In a post on X marking the law’s second anniversary, FSC Chair Lee Eog-won wrote, “Today marks the second anniversary of the enactment of the ‘Virtual Asset User Protection Act…’ It was a meaningful time that brought the virtual asset market, which was outside the institutional framework at the time, into the fold of the law and created an opportunity to establish a user protection system for virtual assets.”
Lee also outlined plans to expand monitoring tools and enforcement capacity, writing, “We will continue to enhance market surveillance investigation and monitoring systems based on AI, and proactively respond to high-risk areas.”
The FSC’s summary indicates both domestic and cross-platform trading practices are subject to scrutiny under the new rules. Referrals to investigative agencies cover conduct ranging from regulatory violations to potential criminal offenses.
The FSC reported the average unlawful profit figures and said investigations will continue as cases move through South Korea’s legal system.
The material on GNcrypto is intended solely for informational use and must not be regarded as financial advice. We make every effort to keep the content accurate and current, but we cannot warrant its precision, completeness, or reliability. GNcrypto does not take responsibility for any mistakes, omissions, or financial losses resulting from reliance on this information. Any actions you take based on this content are done at your own risk. Always conduct independent research and seek guidance from a qualified specialist. For further details, please review our Terms, Privacy Policy and Disclaimers.
Articles by this author
