The South Korean crypto sector is once again in the spotlight with the Avail (AVAIL) scandal, one of the most talked-about events of 2024. Min Byung-deok, a Democratic Party lawmaker, plans to raise concerns about Avail Coin during this week’s parliamentary session. The lawmaker is set to discuss the coin’s speculative price movements and potential manipulation on crypto exchanges. After its listing on Bithumb in July 2023, the sudden price surges and trading activity surrounding Avail Coin have caught the attention of lawmakers and financial regulators alike. Min is particularly focused on investigating the so-called “listing pump,” where a coin’s price skyrockets immediately after listing and then plummets shortly after.
Avail Coin: Dramatic Surge and Crash
When Avail began trading on Bithumb in July 2023, it experienced massive volatility. The token initially traded at 263 won but surged by 1,380% within 15 minutes to reach 3,500 won. However, the sharp rise was followed by an equally sharp decline, with the price dropping back to 296 won within 24 hours, leaving many investors with significant losses.
Such wild price movements are often linked to manipulation in the altcoin market, particularly the practice known as a “listing pump”. This manipulation undermines investor confidence, and Min Byung-deok is now questioning whether Bithumb fulfilled its obligations to protect users from market manipulation and whether it followed proper regulatory standards.
Financial Regulators Asked to Investigate
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Min has called on financial regulators to review Avail’s trading history on Bithumb. He argues that regulators should step in to investigate the coin’s abnormal price activity, potential market manipulation, and possible ties to money laundering. Additionally, Min emphasized the need for tighter market regulations, expressing concerns that exchanges may not be doing enough to protect their users.
The Financial Supervisory Service (FSS) has confirmed that the investigation into Avail is still ongoing but warned that discussing the details could negatively impact market prices. The FSS also stressed that regulators are handling the situation carefully to maintain market confidence while conducting a thorough investigation.
Money Laundering Suspicions Surface
The Avail scandal goes beyond market manipulation. Reports have surfaced that some foreign users allegedly used intermediaries to sell Avail tokens discreetly, raising further concerns about money laundering. The anonymity of crypto transactions has caught the attention of international regulatory bodies, prompting South Korean lawmakers and regulators to discuss stricter measures aimed at curbing money laundering in the crypto market.
Stay tuned to The Bit Journal for updates on this developing story.
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