South Korea probed 40 cases of crypto manipulation over 2 years
South Korea’s financial authorities investigated over 40 cases of unfair trading in crypto markets over the past two years, including market manipulation and fraudulent trading. Of these, 30 were reported or referred to investigators, with 25 suspects identified since the Virtual Asset User Protection Act began in July 2024. Average illegal gains were about 1.4 billion won, or roughly $940,000. The law brought virtual assets under a formal regulatory framework, requiring virtual asset service providers to keep user deposits and assets separate from corporate funds and to hold client deposits in banks. It also expanded oversight of insider trading, wash trading, and manipulation, while giving the Financial Services Commission stronger supervisory and inspection powers. Authorities said they will keep improving surveillance using AI and focus on high-risk activity.
