South Korea investigates 40 crypto market manipulation cases since 2024 law

Jul 20, 2026

South Korean financial authorities have investigated 40 crypto market manipulation cases since the Virtual Asset User Protection Act took effect in July 2024. The two-year crackdown resulted in over 30 cases being referred to investigators and 25 suspects identified, with average illicit gains of $940,000. The Financial Services Commission plans to enhance surveillance using AI to further protect investors.

Market manipulation investigations

▪The average amount of unlawful gains from the investigated cases was approximately 1.4 billion Korean won ($940,000).
▪More than 30 of the cases were referred to investigative agencies, leading to the identification of 25 suspects.
▪The investigations covered unfair trading, including market manipulation and fraudulent crypto trading.
▪South Korea's financial authorities have investigated 40 cases of crypto market manipulation in the two years since a user-protection law took effect.

Virtual Asset User Protection Act

▪The Virtual Asset User Protection Act is designed to protect users and targets illicit activities such as insider trading, wash trading, and market manipulation.
▪The announcement of the investigation figures was made to mark the second anniversary of the Act's enactment.
▪The investigations were conducted under the Virtual Asset User Protection Act, which came into effect in July 2024.

VASP regulatory requirements

▪Under the law, Virtual Asset Service Providers (VASPs) are legally required to separate user deposits and virtual assets from their own corporate holdings.
▪VASPs must also hold all client deposits in banks.