The South Korean National Assembly will investigate AVAIL token transactions on Bithumb in July. Concerns about potential price manipulation have sparked this audit. Democratic Party lawmaker Min Byeong-deok plans to raise the issue at the Political Affairs Committee meeting on October 17.
Lawmaker Criticizes AVAIL Listing
Min Byeong-deok refers to AVAIL as a “burger coin,” meaning a foreign-issued token listed on local exchanges. He introduced this term last year, contrasting it with “kimchi coins,” which describe locally issued altcoins. Last year’s audit focused on similar concerns related to the SUI coin.
Min explained that the October 17 audit will address the AVAIL price controversy and suspicions of manipulation on Bithumb. A “listing beam” effect, where prices spike after listing before dropping sharply, will also be investigated.
Suspicious Trading and Regulatory Scrutiny
In early August, the Financial Supervisory Service (FSS) began an investigation into AVAIL. This followed unusual trading activity in late July. The FSS suspects one investor bought a significant amount of AVAIL from overseas and led trading on Bithumb on July 23. This activity caused AVAIL’s price to jump from $0.17 to $2.56 in just 15 minutes. This price surge only occurred on Bithumb, while prices stayed stable on other exchanges.
Lawmaker Seeks Transaction Data
Min has requested financial regulators provide data for the audit, specifically on abnormal AVAIL transactions on Bithumb. He suspects the investor may have sold AVAIL for foreign traders unable to access South Korean exchanges. Min stressed that both exchanges and regulators must be held accountable for neglecting investor protection.
Min has repeatedly criticized exchanges for ignoring the harm caused by “burger coin” manipulation. The FSS continues to investigate but has stated it will not share details until the probe is complete, as it could impact the market.
Early Test for Virtual Asset User Protection Act
Bithumb has also refrained from commenting while the investigation is ongoing. The exchange assures it follows monitoring and reporting guidelines under the Virtual Asset User Protection Act. This law, enacted in July, includes measures to protect investors and prevent price manipulation.
An industry insider believes this case will set an important precedent for financial and investigative authorities, regardless of its outcome.
The post South Korean National Assembly to Probe Altcoin AVAIL ‘Price Manipulation’ Case appeared first on Cryptonews.
