Suspect indicted on charges of violating the Virtual Asset User Protection Act

Accused of manipulating prices of 11 virtual assets through irregular order submissions

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The Seoul Southern District Prosecutors' Office's joint investigation unit on virtual asset crimes indicted a suspect identified only as A on Wednesday on charges of violating the Virtual Asset User Protection Act.

According to prosecutors, A is accused of using an API — an automated order program — to submit irregular orders and manipulate the prices of 11 virtual assets, netting about 700 million won ($516,000) in illicit gains.

An API is an interface that links market data, order functions and account information from exchanges to investor-developed programs, enabling automated trading.

The investigation began after the Financial Services Commission filed a complaint with prosecutors in December last year. The Seoul Southern District Prosecutors' Office said it worked with relevant agencies to analyze A's pattern of irregular API order submissions and real-time fluctuations in virtual asset trading volume, ultimately determining how those irregular orders affected market prices.

"We will do everything in our power to secure a conviction befitting the crime," a prosecutor said, "and will continue to respond firmly to those who disrupt the virtual asset market."


newday@heraldcorp.com