South Korean authorities have detailed two fraudulent trading tactics used to manipulate Fusionist (ACE) tokens.
Findings from the Seoul exam specify how traders used artificial strategies to deceive the market.
The fake volume scheme created an illusion of demand
The first method involved artificially inflating the volume of transactions. The manipulator strategically exceeded the market price and set the orders for purchase limits at the same time, selling the limit orders below.
This created a false impression of high demand, leading trainers to believe that the token was experiencing organic growth. The report shows that smart contracts automatically execute these orders, maintaining constant activity and masking the lack of true market interest.
Counterfeit purchase pressure like fast spoofing
The second method involved creating fake purchase pressure through spoofing. The manipulator has placed purchase orders at five price levels above the last trading price, designed to mimic real investors’ demand.
Repeating this process, traders continued to misunderstand sustained profits and artificially raised prices.
Related: Binance announces its 40th Launchpool to support Fusion (ACE) tokens
Impact of prosecutor’s detailed manipulation
On April 3, prosecutors reportedly exposed how defendants manipulate Ace Token prices using “hit” orders (inflate volumes of lost transactions) and spoofing (to repeatedly place and cancel fake purchase orders). These tactics caused a 15-fold surge in Bithumb’s daily ACE volume, accounting for nearly 89% of activity as “hit” orders.
Prosecutors said the defendants also issued legal selling orders to settle the coins entrusted to them, but these were not part of the crime of manipulation.
Legal Fallout and Regulatory Implications
Authorities believe that these operating strategies contribute significantly to investors’ losses and highlight concerns about unregulated trading practices. An ongoing trial in Seoul determines the legal outcomes of those involved.
Related: Coinbase CEO is sounding Memecoin Market Scams alarm
Regulators around the world may view this case as a precedent for a more stringent crackdown on fraudulent market manipulation tactics within the crypto industry.
Disclaimer: The information contained in this article is for information and educational purposes only. This article does not constitute any kind of financial advice or advice. Coin Edition is not liable for any losses that arise as a result of your use of the content, products or services mentioned. We encourage readers to take caution before taking any actions related to the company.
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