Market News

South Korean Regulator Launches Investigation into ZkSync Amidst Price Volatility

In a significant move, the South Korean Financial Supervisory Service (FSS) has initiated an investigation into the altcoin ZKsync.

This action follows a remarkable price surge of 1000% observed shortly after ZKsync's listing on Upbit in January.

On February 1st, the token's price skyrocketed from 33 KRW to 350 KRW within three hours before experiencing a rapid decline.

Such dramatic fluctuations have prompted regulators to closely examine the potential for market manipulation.

A spokesperson for the FSS stated that they are closely monitoring the trading activities surrounding ZKsync.

Legal experts have indicated that the unusual trading patterns could suggest collusion or other unfair practices among traders.

Jin Hyeon-su, an attorney, pointed out that the surge in trading volume is often indicative of possible market irregularities.

The FSS is assessing the gravity of the situation and may proceed with a formal investigation if warranted.

As a key player in the cryptocurrency sector, South Korea's regulatory actions signify an increasing scrutiny on altcoin trading dynamics.

Investors are advised to stay alert as the investigation develops, especially amidst the backdrop of volatile cryptocurrency markets.