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South Korea probes 40 crypto manipulation cases over two years
Authorities said 30 of the 40-plus cases were referred or reported to investigative agencies, leading to 25 suspects since the Virtual Asset User Protection Act took effect in July 2024.
South Korea’s financial authorities investigated more than 40 cases involving unfair crypto trading over the past two years, including market manipulation and fraudulent activity, Financial Services Commission Chair Lee Eog-won said on the second anniversary of the Virtual Asset User Protection Act, according to Cointelegraph.
Of the total cases, Lee said 30 were reported or referred to investigative agencies, which identified 25 suspects after the law took effect in July 2024. He also said average unlawful gains were around 1.4 billion Korean won, or about $940,000.
The Virtual Asset User Protection Act is intended to bring virtual asset services under a user protection framework, including requiring virtual asset service providers to separate client deposits and crypto assets from their own corporate holdings and hold client deposits at banks.
The law also targets activities such as insider trading, wash trading, and market manipulation, expanding the Financial Services Commission’s authority to supervise and inspect virtual asset service providers. Lee added that the regulator plans to enhance market surveillance and monitoring systems using AI and focus on high-risk areas.