South Korea handles its first cryptocurrency "pump and dump" case under the new law, with the suspect illegally profiting hundreds of millions of won within a month

ChainCatcher news, according to Cointelegraph, the Financial Services Commission (FSC) of South Korea reported the first unfair trading case since the implementation of the "Virtual Asset User Protection Act." The law will take effect in July 2024 and requires local virtual asset service providers (VASP) to report abnormal transactions and investigate unfair trading patterns.

According to the FSC, the suspect used a "pump and dump" scheme to manipulate the market by initiating multiple buy orders to inflate the price of a certain cryptocurrency, and then selling off a large amount of pre-purchased assets. The entire manipulation process is typically completed within 10 minutes, resulting in severe price fluctuations of the targeted asset and illegal profits of hundreds of millions of Korean won within a month.

The FSC stated that in light of the continuous growth in cryptocurrency trading volume, regulatory authorities will further strengthen the construction of the investigation system, promote market monitoring of VASPs, and consider improving market structure to ensure transaction transparency and fairness.