A group that manipulated prices by hoarding virtual assets has been reported to the prosecutor's office.
The Financial Services Commission and the Financial Supervisory Service announced on the 17th that they had reported suspects of manipulating prices in the virtual asset market to the prosecutor's office after a decision by the Financial Services Commission on the 16th. Those caught this time are suspected of having raised the prices of virtual assets on specific exchanges by more than 10 times through the "racehorse" method and the "caging pumping" method.
The racehorse method refers to the strategy of massively hoarding quantities for 20 to 30 minutes before and after the point where the price volatility of a virtual asset is reset. Using this method creates the illusion for other investors that there is a continuous influx of buying pressure for the asset in question.
Caging pumping was used in cases where external deposits and withdrawals of specific virtual assets became temporarily impossible due to the designation of precautionary trading items on the exchange. When external deposits and withdrawals are blocked, only the quantities within the exchange are circulated, making it easy to manipulate prices by repeatedly placing orders.
The financial authorities emphasized that manipulating prices of virtual assets can lead to penalties of over one year in prison or fines amounting to three to five times the profit gained from the manipulation, in accordance with the Act on Protection of Users of Virtual Assets. They also stated that they would maintain market order through market surveillance of unfair trading.