The financial authorities will file a complaint with investigative agencies against a suspect who profited by manipulating cryptocurrency prices through large buy orders to push up prices.
The Financial Services Commission said on the 18th that it held a regular meeting and resolved to file a complaint with investigative agencies against a suspect in one case of cryptocurrency price manipulation.
According to the Financial Services Commission, the suspect bought a specific cryptocurrency at a low price and then placed high-priced buy orders worth hundreds of millions of won at the point when the rate of change reset, sharply driving up the price. After the cryptocurrency rose to the top ranks by increase rate on the exchange's application (app) and website, drawing in retail investors' buying, the suspect immediately sold the holdings to realize profits.
When the cryptocurrency's ranking fell, the suspect also submitted additional high-priced buy orders several times to push the token back into the top tier by price increase rate. The full sell-off typically occurred within three minutes, and when buying flowed in, selling began 10 seconds later, according to the findings. The suspect repeatedly manipulated the prices of dozens of cryptocurrencies using this method.
The financial authorities cautioned that if investors chase-buy tokens that surge at a specific time based solely on the increase rate, they could incur losses from a sharp drop. They also explained that even a single submission of a high-priced buy order can be deemed intended to induce trading, and if such acts are repeated, they may be subject to measures by the financial authorities.
The financial authorities said, "We will take stern measures against detected unfair cryptocurrency transactions."