South Korean Prosecutors Detail Two Fraudulent Trading Tactics Used to Manipulate Fusionist (ACE) Token Prices

South Korean authorities detailed two fraudulent trading tactics used in the price manipulation of the Fusionist (ACE) token, which resulted in investor losses totaling 7.1 billion won ($4.85 million).

South Korean authorities have highlighted two fraudulent trading tactics used in the price manipulation of the Fusionist (ACE) token, which resulted in investor losses of 7.1 billion (385 million) in new learnings from a trial in Seoul.

How traders used an artificial strategies to deceive the market.

Fake Volume Scheme Created Illusion of Demand

The first method involved the artificial inflation of trading volume. Manipulators strategically placed buy limit orders above the market price while simultaneously setting sell limit orders below it.

This created a false impression of high demand, leading traders to believe the token was experiencing organic growth. Reports indicate smart contracts automatically executed these orders, maintaining constant activity and masking the lack of genuine market interest.

High-Speed Spoofing Faked Buy Pressure

The second method involved creating fake buy pressure via spoofing. Manipulators placed buy orders at five price levels above the last traded price, designed to mimic real investor demand, only to automatically cancel them within three seconds.

Repeating this process continuously misled traders about sustained interest, artifactscially driving up the price.

Prosecutors Detail Manipulation Impact

On April 3, prosecutors reportedly exposed how defendants manipulated ACE token prices using “hit” orders (loss-making trades to inflate volume) and spoofing (e.g., repeatedly placing and canceling fake buy orders). These tactics caused a 15-fold surge in daily ACE volume on Bithumb, with “hit” orders accounting for nearly 89% of the activity.

Prosecutors noted that the defendants also placed legitimate sell orders to liquidate coins entrusted to them, although these were not part of the manipulation charges.