South Korea Refers Crypto Whale to Prosecution Over Alleged Pump-and-Dump Scheme

South Korea’s Financial Services Commission has referred two individuals to prosecution following its 12th regular meeting, targeting suspected price manipulation across separate cryptocurrency cases. The regulator accused one crypto whale of using tens of billions of Korean won over roughly two months to artificially control a token listed on both domestic and overseas exchanges.

Suspect Controlled Nearly Half of Token’s Circulating Supply

According to the FSC, the whale accumulated close to half of the token’s total circulating supply to establish market dominance, then inflated the price on overseas exchanges before encouraging domestic investors to buy in. The suspect subsequently dumped holdings onto a domestic exchange, causing significant losses for retail participants.

Second Case Involved API-Based Order Manipulation

The second referral involves a suspect who allegedly used API channels to repeatedly place small buy and sell orders simulating active trading, while simultaneously submitting high-priced limit orders through a web channel to push prices higher before selling off holdings in stages.

Regulator Warns Investors and Strengthens Detection Tools

The FSC warned investors against chasing tokens with unexplained price or volume spikes, describing pump-and-dump tactics as schemes designed to artificially restrict supply before collapsing prices. The watchdog also announced plans to improve its concentrated trading warning systems and investigative capabilities.

Tags: South Korea crypto, FSC, pump and dump, crypto manipulation, crypto whale, market fraud, financial regulation, Korean crypto market