Korea Investigates 20 Public Companies for Using Crypto Claims to Boost Share Prices
The South Korean Financial Supervisory Service (FSS) has been investigating 20 crypto-related companies listed on the country’s stock exchange, Kosdaq, for unfair practices, local media reported.
The country’s financial authorities have also issued a warning to investors “that a number of unfair trade transactions were found in so-called ‘virtual currency-related stocks’ in the stock market,” Yonhap detailed. The Korean Banker elaborated:
There has been a frenzy of virtual currency related stocks in the stock market…Many listed companies have announced related business plans such as launchin] virtual currency exchanges and so-called ‘virtual currency themes’. The share price of the virtual currency stock surged due to the announcement of the business plan.
Among the schemes used are the establishment of crypto exchanges and the announcements of initial coin offerings (ICOs).
“Many companies have published virtual currency-related business plans through disclosure and media, but in reality, there are many cases in which the business is delayed or the business is uncertain,” Business Post conveyed.