South Korea launches AI platform to detect crypto price manipulation

South Korea's Financial Supervisory Service has deployed a real-time artificial intelligence platform that screens trading data, exchange notices, news, complaints and online content for suspected crypto market abuse. The system identifies unusual price and volume movements, compares them with patterns from previous investigations and uses generative AI to prepare reports for investigators. It targets rapid price manipulation, wash trading, coordinated trading, front-running and false promotional claims, while human investigators must review alerts before a detailed analysis or formal investigation begins. The FSS plans to add cross-exchange fund-flow analysis and on-chain transaction tracking. The platform expands an algorithm introduced in January and follows enforcement under South Korea's Virtual Asset User Protection Act, which took effect on July 19, 2024.

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