South Korean authorities have indicted suspects for a pump and dump scheme involving artificial price inflation of cryptocurrency. This is the first case reported under the country's Virtual Asset User Protection Act, effective since July 2024. Suspects allegedly manipulated cryptocurrency prices by placing multiple buy orders to create a temporary price spike, followed by dumping their holdings. This manipulation occurred within brief intervals, allowing them to profit considerably. The Financial Services Commission (FSC) plans to enhance monitoring systems and cooperation with virtual asset service providers to ensure fair trading practices amid rising trading volumes. Additionally, the FSC is considering punitive measures for the local exchange Upbit for compliance violations. The report comes as South Korea is advancing discussions on corporate crypto investments and reviewing ongoing legal challenges, including a notable case involving the former Bithumb chair related to a significant data breach.

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