South Korean Regulators Crack Down on Crypto Wash Trading Schemes

The South Korean Financial Services Commission (FSC) has referred four cases of unfair virtual asset trading to investigative authorities. In one instance, a token issuer hired market makers to conduct wash trading, accounting for over 90% of the token's total volume to meet listing requirements for major exchanges. Other cases involved individuals using API programs to manipulate prices through high-frequency small-lot trades. Since the implementation of the Virtual Asset User Protection Act in July 2024, authorities have referred approximately 30 cases for investigation, with average illicit gains reaching about $1.03 million.