South Korea's FSC Transfers Two Cryptocurrency Market Manipulation Cases to Prosecutors

According to Chosun Ilbo, on July 1, South Korea's Financial Services Commission approved transferring two cryptocurrency market manipulation cases to prosecutors. The first case involves cross-border exchange arbitrage, where suspects accumulated over half of global circulation of a digital asset listed on both domestic and foreign exchanges, drove up prices overseas, then exploited cross-market arbitrage to lure Korean investors, resulting in net gains domestically while losses concentrated among Korean retail investors. The second case involves high-frequency manipulation of a domestic cryptocurrency, where suspects rapidly submitted market orders within one second via API and placed high-price buy orders to artificially inflate volume and price before distributing holdings for profit.
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