Prosecutors Conduct Search and Seizure at Residences of 'Coin Price Manipulation' Suspects... First Case under the Virtual Asset Act

The prosecution announced on the 1st that it conducted a search and seizure on a man in his 30s, Mr. A, who is suspected of manipulating virtual asset (coin) prices.

Seoul Southern District Prosecutors' Office, Yangcheon-gu, Seoul.
Photo by Daehyun Kim kdh@

According to the legal community on the day, the Seoul Southern District Prosecutors' Office Virtual Asset Crime Task Force (headed by Park Geon-wook) conducted search and seizure operations over two days starting from the 30th of last month at a total of seven locations, including Mr. A's residence and office, on suspicion of violating the Act on the Protection of Virtual Asset Users through acts such as coin price manipulation.

According to the prosecution, Mr. A is suspected of artificially manipulating prices and trading volumes by continuously and repeatedly placing large high-price purchase orders and fictitious purchase orders on domestic virtual asset exchanges with the intent to sell coins, which he received from an overseas virtual asset issuing foundation, at a high price in Korea. It is understood that Mr. A gained tens of billions of won in illicit profits through this.

The financial authorities transferred the case to the prosecution on the 25th of last month through a fast-track (emergency procedure). This is the first case of unfair trading reported to the prosecution after the enforcement of the Act on the Protection of Virtual Asset Users, following the detection and review of abnormal transactions by virtual asset exchanges and investigations by financial authorities.