Insider trading on cryptocurrencies? The hypothesis hit the South Korean financial regulators, accused of having exploited non-public information to gain an advantage in the market.
The term insider trading refers to the unlawful practice of exploitation of information held by virtue of its position and not yet disclosed, the disclosure of which will have an impact on the market. After months of rallying, cryptocurrencies could also be targeted by this practice.
Choi Heung Sik, head of the Financial Supervisory Service in Seoul, has confirmed the internal presence of employees who sold the cryptocurrencies in their possession before the publication of the news concerning the tightening on the sector that have brought down the entire market.
Being aware of the imminent collapse, they have sold their digital assets, benefiting from information not yet disclosed in the market. A clear case of insider trading on cryptocurrencies.
“The link between the inside and the outside of the company is currently under investigation”,
confirmed Hong Nam Ki, director of the financial regulator’s Coordination office.
“It is horrible that public employees have acted to influence the market and profit from it” he subsequently added.
Now further investigations will be carried out to understand who was involved, and measures will be applied. We will keep you updated as soon as further information is released on the matter.
Meanwhile the authorities get to work to find out who has spotted insider trading, the cryptocurrencies are all rising again, trying to regain value after the crash.