Two individuals from South Korea were apprehended for artificially inflating the value of the ACE token on the Bithumb exchange, amassing approximately $5 million through deceitful transactions.
Two South Korean individuals were apprehended under suspicion of artificially inflating the value of the ACE token on the Bithumb digital currency platform. They stand accused of defrauding approximately $5 million by illegally manipulating the token’s price.
As reported by local news outlets, it was stated that Mr. Lee, aged 33, the CEO of a digital asset firm, and Mr. Kang, a previous employee, both were taken into custody on January 3 by the Seoul Southern District Prosecutors’ Office. The accusation against them is for alleged violations of the “Virtual Asset User Protection Act.” The prosecution claims that they illegally earned approximately 7.1 billion won ($5 million).
The gentlemen artificially inflated the value of the ACE token, a cryptocurrency primarily traded on Bithumb in South Korea, through deceitful tactics such as posting false orders. They employed various strategies to deceive other traders, including creating the illusion of high trading activity by placing both buy and market orders that weren’t genuine. This gave the impression of a thriving market, leading more individuals to trade ACE.
Bithumb ACE Token Price Manipulation Sparks 15x Trading Surge
Initially, these two individuals allegedly offloaded approximately 1.22 million ACE tokens, causing a surge in price, according to prosecutors. They amassed wealth by deceiving others into purchasing these tokens. The trade of ACE on Bithumb experienced a dramatic 15-fold increase in volume within a single day. As of July 22, 2024, the daily trading volume for ACE tokens stood at approximately 2.45 million. This sudden increase in activity, caused by their manipulation, contradicted the consistent market capitalization.
The significance of Fast Track terminology lies in the fact that this case is pioneering its way through the system as the initial one to be handled. The Financial Services Commission introduced it back in October 2024, with the aim of expediting processing for infractions related to virtual assets. This fast track system enables the crypto market to swiftly identify price manipulation and other illicit activities.
This instance underscores the increasing occurrence of manipulation in the realm of cryptocurrency trading, as stated by the prosecutors’ office. They are taking this matter gravely and continue to thoroughly investigate the situation.
In case of conviction, Mr. Lee and Mr. Kang could face significant repercussions. This incident serves as a cautionary tale to all participants in the cryptocurrency market, emphasizing that manipulating prices for personal profit is illegal and can lead to serious consequences. It’s advisable for investors to stay vigilant against deceptive market trends.
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2025-01-05 15:20