The South Korean legislator demonstrated how statements about the ban on trade in crypto-currencies allowed officials to earn on insider trading. According to the evidence provided by the officials, the officials had 40 minutes to buy the currency during the market collapse before the rate rose back.
Manipulation by the market with the help of the embargo
Representative Hae Tae-Kung of the South Korean party Bareun held a press conference in the National Assembly to disclose the practice of normative declarations. The publication Asia Economy, quotes the official: "The government intervened in the crypto-currency market, which led to market manipulation."
The publication of Korea Joongang Daily clarifies:
"The lawmaker on Monday offered the government the imposition of an embargo on bitcoin, which gave journalists and officials 40 minutes to use the crypto currency."
Ha explained that "the government told reporters on Monday at 9 am about its forthcoming embargo proposal, which was canceled at 9:40 am."
Before the official ban, traders and investors learned that regulators can prohibit trade in crypto-currencies. Nevertheless, the head of the Coordination Commission for Economic Policy, Prime Minister Chung Ki-joon, prepared a report that "the government changed its position on the regulation of the crypto-currency " on Monday, 9:40, stating that "the government will not stop trading in crypto-currencies . " "Anyone who knew about the lifting of the ban could take advantage of the situation to buy a crypto currency before it takes off in price," writes the Korean edition, citing Ha Tae-Kung .
Korea Joongang Daily continues to quote Ha:
After the government sent a text message informing journalists about the upcoming announcement, which was not disclosed to the public, the market rallied. When the press began to report the news at 9:40 am, the market reacted immediately.
Purchase at a low price
Ha said:
"I analyzed the press release of the government embargo on the time zone and made sure that the market profitability changed significantly 40 minutes before the lifting of the embargo."
The South Korean legislator talks about how the government's policy has led to market manipulation.
According to the schedule prepared by the official, bitcoin traded at the level of 19.07 million won (~ $ 17,864) at 9 am local time on Monday morning. At 9:40 am, shortly before the end of the embargo, the price of bitcoin rose to 19.46 million won. By 10:00 the price has already reached its peak of almost 20 million won.
Ha finished with these words:
"According to common sense, officials should be protected before the official announcement of information that may affect the price of assets. Government announcements that can cause huge fluctuations in the crypto currency market should be made in a timely manner. Because of these actions with the embargo, people suffered enormous damage."
