ACE Token Investigation: Scandal on Bithumb Leads to Arrests

According to local media, two men have been arrested and charged in South Korea for alleged manipulation of the ACE token price on the crypto exchange Bithumb. The suspects, a 33-year-old CEO of a virtual asset company known as M, identified as Lee, and a former employee of the same company, Kang, are accused of violating the Virtual Asset User Protection Act.

Based on the police investigation conducted by Chief Park Geon-wook, the pair manipulated the price of the native token of the blockchain-based gaming project Fusionist, ACE. In South Korea, Bithumb is the only crypto exchange known to trade ACE on the market.

The suspects are said to have placed false buy and sell orders to simulate demand for ACE, thereby increasing the price. They then sold 1.22 million ACE-tokens, earning a profit of 7.1 billion won (approximately $4.8 million).

A Case of National Priority

The case is the first to be placed on the South Korean Financial Services Commission’s “Fast Track” list since the introduction of the Virtual Asset User Protection Act in October 2024. This emphasizes the seriousness with which South Korean authorities are dealing with market abuse within the crypto sector.

The suspect trading activities came to light on July 22, 2024, when the trading volume of ACE tokens increased nearly 15 times in one day to 2.45 million. This abnormal pattern caught the attention of regulators, leading to an extensive investigation.

Current Status of ACE

At the time of writing, ACE has slightly decreased by 0.3% in the last 24 hours, according to CoinGecko. Over the past week, the token has risen by 1.1%. However, in the past year, the Fusionist token has fallen by nearly 75%. ACE has a market capitalization of approximately $92 million and a fully diluted valuation of $319 million.

Globally, ACE’s trading volume stands at $7.8 million in the last 24 hours. The trading volume dropped by 15% compared to the previous day, indicating a decrease in market activity. ACE was first listed on Bithumb in August 2024 with a starting price of about 3,722 won ($2.53).

What Does This Mean for the Future?

This case underscores the importance of stringent regulation and oversight within the crypto sector. Although ACE once seemed a promising token, the manipulation has tarnished its reputation. For investors, this incident underscores the need for vigilance and thorough research before investing in virtual assets.