The Financial Services Commission filed a criminal complaint in one case and referred suspects in three others to investigative authorities following joint investigations with the Financial Supervisory Service. The four cases comprise three alleged schemes using automated application programming interface trading to manipulate prices over very short periods and one scheme in which virtual asset operator employees allegedly inflated trading volume through wash trades. Two cases involved brothers who allegedly used the same strategy across multiple virtual assets, repeatedly executing small market orders through automated programs to create an appearance of active trading while placing high priced limit orders to drive up prices before selling their holdings. In the third case, the suspect allegedly used accounts in other people’s names to evade order limits, accumulated dozens of virtual assets and combined high frequency market trades with high priced limit orders before selling at manipulated prices. The fourth case involved operator employees who allegedly hired a professional trader and used nominee accounts to generate artificial volume representing more than 90% of total trading, helping maintain an exchange listing and support applications to larger exchanges. The commission cautioned users against buying virtual assets solely because of unexplained price or volume increases, particularly where activity is concentrated on one exchange. It also advised investors to examine white papers and disclosures closely, including the identity of the actual operator, token circulation and project progress where an issuing foundation is based in an offshore tax haven or has an unclear corporate presence.

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