South Korea watchdog probes unusual concentrated Bitcoin trading on Bithumb

South Korea’s Financial Supervisory Service is examining whether unusual trading took place on Bithumb after as much as 70% of Bitcoin trading on the exchange was concentrated in 10 accounts, KBS reported. When Bitcoin rose from around 91 million won to above 100 million won in two days on Aug. 19, the top 10 accounts’ share of Bithumb’s total Bitcoin trading value climbed to as high as 70%, compared with a usual level of about 30%, according to the report. KBS said the pattern resembled unfair trading in which volume or buying interest is inflated to encourage retail purchases and lock in gains. The Financial Supervisory Service has classified the concentration in specific accounts on Bithumb as an unusual phenomenon and asked the South Korean exchange for a list of top traders and raw trading data, KBS reported. The regulator is also checking why Bithumb waived fees for API trading, which places large automated orders, during the period when the concentrated trading occurred.