FSC Refers Suspects of Coin Price Manipulation to Investigative Authorities

Individuals who manipulated prices in the virtual asset market through collusive trading or spoofing orders have been referred to investigative authorities.

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The Financial Services Commission announced on the afternoon of April 29, 2026, at its 8th regular meeting, that it had decided to notify investigative agencies regarding Mr. A and Mr. B for engaging in price manipulation in the virtual asset market.

According to the Financial Services Commission, Mr. A inflated the price of virtual assets through spoofing orders and gained illicit profits amounting to tens of millions of won. He submitted numerous spoofing orders for specific virtual assets he had already purchased to drive up the price; when general investors were drawn in, he sold those virtual assets. For example, after buying a coin at 8.5 won, he placed spoofing orders at 8.7 won. Once actual buy orders accumulated at this price, he sold the virtual assets and canceled his own orders.

Mr. B manipulated prices by borrowing application programming interface (API) keys for multiple accounts on a virtual asset exchange and conducting wash trades. He used collusive trading between accounts to drive up coin prices and sold his holdings for profit when retail investors began buying in.

An official from the Financial Services Commission stated, "It is necessary to refrain from chasing after virtual assets that experience sharp increases in price or trading volume without reasonable cause," and added, "The authorities are constantly monitoring unfair trade practices in the virtual asset market and initiate investigations whenever suspicious transactions are detected."

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