South Korean Regulators Crack Down on Stolen Coins Dumped on Crypto Exchanges
South Korean regulators are cracking down on traders who attempt to dump stolen coins on the country’s crypto exchanges. This move comes in response to a suspected hack on the NFPrompt platform last month, where a South Korean trader allegedly purchased stolen NFP coins from a hacker and then dumped them on the Coinone exchange.
The Financial Supervisory Service (FSS) and the Financial Services Commission (FSC) are taking action to prevent trading platforms from listing hacked tokens and to investigate allegations of price manipulation. Coinone has responded by adding NFP to its “investment cautionary coins” list due to security concerns.
Regulators are also 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 abnormal transaction systems to identify illegal or suspicious transactions.
The incident has raised concerns about the security of OTC transactions in South Korea, with regulators promising to take action after reports of multiple OTC-related thefts. Coinone is still investigating whether the leak of NFPrompt foundation’s assets was caused by hacking and is in discussions with the foundation to determine the truth of the matter.
Overall, South Korean regulators are working to create industry-wide standards to prevent illegal transactions and create a safety net for exchanges following hacks and leaks. They are determined to protect investors and maintain the integrity of the crypto market in the country.
