South Korean Regulators Want to Stop Traders Dumping Stolen Coins on Domestic Exchanges
South Korean regulators want to block traders from dumping stolen coins on the country’s crypto exchanges.
The move follows news from earlier this month, when regulators in the nation said they wanted to stop trading platforms from listing hacked tokens.
Per News1, the Financial Supervisory Service (FSS) and the Financial Services Commission (FSC) want to move following a suspected hack on the NFPrompt (NFP) platform last month.
A South Korean trader, some claim, knowingly bought NFP coins from a hacker, which they then reportedly “dumped” on the Coinone exchange.
On March 28, South Korean crypto community members were outraged by news that a domestic investor allegedly “purchased stolen assets from a hacker in an over-the-counter [OTC] transaction.”
The investor, it seems, wrote a social media post that suggests they may have bought coins they appear to have known originated from the hack. The investor admitted to buying the coins in an OTC deal.
In the since-deleted post, this investor raises questions about Coinone’s liquidity and capacity to process a large NFP transaction.
The investor also appears to use a derogatory term to describe the Coinone CEO and Founder Cha Myung-hoon.
Coinone responded by adding NFP to its “investment cautionary coins” list, citing “security concerns” as its main reason.
Regulators, meanwhile, have responded with a promise to probe the transaction and further allegations of price manipulation.
NFPrompt prices fell abruptly on April 28, with authorities suspicious about the sale’s effect on the token.
Regulators are still overhauling systems related to “unfair transactions” ahead of the implementation of the Virtual Asset User Protection Act in July.
They have ordered domestic exchanges to launch
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