South Korea's Financial Services Commission Refers Two Cryptocurrency Manipulation Cases to Prosecutors

CoinFeed July 1 news, according to Chosun Ilbo, South Korea's Financial Services Commission voted at a regular meeting to refer two suspected cases of virtual asset market manipulation to prosecutors. The first case involves digital assets listed simultaneously on both domestic and overseas exchanges. The suspect invested hundreds of billions of won to acquire more than half of the global circulating supply, then inflated the price on overseas exchanges first. Using cross-market arbitrage and price linkage effects, they induced South Korean investors to follow suit and buy, generating profits on the domestic exchange far exceeding losses overseas, with losses concentrated among South Korean investors. The second case involves ultra-short-term manipulation of "kimchi coins". After pre-purchasing specific assets, the suspect repeatedly submitted market buy and sell orders through API channels within 1 second to create the illusion of active trading, while repeatedly submitting high-priced buy orders to push up the price. Once buying surged, they sold their holdings in batches to cash out.