TechFlow News, February 5: According to the Korea Economic Daily, South Korea’s Financial Supervisory Service (FSS) has launched an investigation into abnormal price fluctuations of the ZKSync (ZK) token on the virtual asset exchange Upbit. The token surged approximately 1,000% within just three hours on February 1 before sharply declining, raising suspicions of market manipulation.
The FSS’s Virtual Asset Investigation Bureau stated it has obtained relevant materials and is currently analyzing them; depending on the severity of the case, the probe may swiftly escalate to a formal investigation. The ZKSync token experienced extreme volatility around Upbit’s system maintenance—rising from roughly 33 Korean won to 350 won, then rapidly falling back to just over 30 won.
Legal experts note that such conduct may violate Article 10 of South Korea’s Virtual Asset User Protection Act, which prohibits market manipulation and unfair trading practices. Offenders could face imprisonment for at least one year or fines ranging from three to five times their illicit gains.
