South Korean crypto CEO gets 3-year prison term in market manipulation case: report

Jong-hwan Lee, CEO of a South Korean crypto asset management firm, was sentenced by the Seoul Southern District Court to three years in prison for violating the Virtual Asset User Protection Act through market manipulation. The court also imposed a 500 million won fine and ordered the forfeiture of approximately 846 million won in criminal proceeds. Lee used an automated trading program between July and October 2024 to inflate trading volumes and place wash trade orders for the ACE cryptocurrency, allegedly earning 7.1 billion Korean won ($4.88 million). Investigators found Lee accounted for 89% of the trading activity when volume surged dramatically. The court deemed the crime serious, obstructing fair price formation and undermining investor trust, though Lee was not taken into custody immediately due to good behavior. This case marks the first violation of South Korea's Virtual Asset User Protection Act, which became effective in July 2024. A former employee indicted on similar charges received a two-year suspended sentence.

(Source：The Block)