South Korea deploys real-time AI system to spot crypto manipulation

South Korea's financial regulator has turned on a real-time surveillance platform that uses generative AI and machine learning to flag suspected crypto price manipulation.

The Financial Supervisory Service said on Aug. 20 that the system scans trading data, news, and online content automatically, replacing parts of a process that once required investigators to sift through exchange data by hand.

When the platform finds an asset with abnormal price or volume changes, it compares the activity to patterns drawn from past enforcement cases. Staff then focus on trades that resemble known forms of market abuse.

The FSS listed specific patterns the system hunts for. A