Bithumb Exchange Sees First Prison Sentence Under South Korea’s New Crypto Law
A Seoul court has sentenced the CEO of a cryptocurrency trading firm to three years in prison for manipulating the market for the ACE token on the Bithumb exchange. This landmark ruling marks the first application of South Korea's Virtual Asset User Protection Act, which was enacted in July 2024.
Prosecutors demonstrated that the defendant executed rapid-fire 'hit trading'—artificially inflating ACE's trading volume through extreme price orders without a legitimate investment purpose. The court imposed additional fines totaling 1.35 billion won (approximately $1 million) alongside the prison term.
Legal experts note this establishes a critical precedent for prosecuting crypto market manipulation, which previously lacked clear enforcement mechanisms. A co-defendant received a two-year suspended sentence, underscoring the judiciary's graduated approach to sentencing.
