Prosecutors Investigate Two 'Kimchi Coin' Issuers for Market Manipulation Allegations

First Case of Investigation into Domestic Coin Issuer Suspected of Bicycle Trading

The prosecution is investigating two issuers suspected of listing so-called Kimchi Coin (cryptocurrency issued domestically) on domestic exchanges and manipulating the market by directly buying and selling it.
Photo by Getty Images Bank

[Asia Economy Reporter Oh Gyumin] The prosecution is investigating two issuers suspected of listing so-called Kimchi coins (cryptocurrencies issued domestically) on domestic exchanges and manipulating prices by directly buying and selling them.

The Financial Investigation Division 1 of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Lee Seunghyung) announced on the 1st that it is investigating two issuers who created L Coin and M Coin and listed them in March last year, following a request from the Financial Intelligence Unit (FIU) under the Financial Services Commission. This is the first time the prosecution has investigated domestic coin issuers on suspicion of wash trading (price manipulation through direct trading).

They are suspected of manipulating prices by creating multiple corporate accounts on exchanges and directly buying and selling the coins. The prosecution is also reportedly examining whether the exchange where the coins were listed, 'Gopax,' colluded with the issuers during the listing or trading process.

During inspections of cryptocurrency operators, the FIU identified such suspicious wash trading activities and sent a notice to domestic exchanges in September warning them to be cautious of wash trading.

This content was produced with the assistance of AI translation services.