Seoul Court Jails Crypto Exchange CEO for Price Manipulation (artificially inflating prices) — First Case Under July 2024 Law

The CEO of a Korean crypto asset firm was jailed for 3 years, fined ₩500M, and had illicit gains confiscated in the act’s first enforcement case.

Summary

On Feb. 4, a Korean court sentenced crypto asset firm CEO Jong-hwan Lee to three years in prison and fined him ₩500 million under the Virtual Asset User Protection Act, marking the law’s first ruling. Lee was found guilty of manipulating ACE token trading volumes between July 22 and Oct. 25, 2024, resulting in illicit gains of 846 million won, which were confiscated. The verdict highlights South Korea’s intensified enforcement against digital asset market abuse.

Terms & Concepts
  • Virtual Asset User Protection Act: A South Korean law enacted in July 2024 to safeguard investors and regulate market integrity in the digital asset sector.
  • Price manipulation: Illegally creating artificial price movements to mislead market participants.