South Korea Probes 40 Crypto Manipulation Cases Under 2024 Law

South Korea's Financial Services Commission (FSC) has investigated approximately 40 suspected crypto market manipulation cases since the Virtual Asset User Protection Act took effect in July 2024. Over 30 confirmed cases have been referred for prosecution, identifying 25 suspects. The average illicit gain reached about 1.4 billion won ($1 million) per case, with eight cases involving profits between 500 million won and 5 billion won, and one exceeding 5 billion won. Penalty surcharges of 125% to 165% of illicit gains have been imposed. The FSC plans to expand AI-powered market surveillance and is considering new powers to freeze accounts linked to unfair trading, along with a whistleblower reward system. A second phase of crypto legislation is under review.