South Korea Probes ZKsync After 970% Price Surge Sparks Manipulation Concerns on Upbit

TLDR: ZKsync surged 970% to $0.24 on Upbit before crashing back to $0.023 within nine hours on February 1. Trading volumes on Upbit exploded 4,000% compared to just 150% on Coinbase during the same period. Violators face over one year in prison and fines up to five times their profits under Korean law. South Korea deploys AI-powered tools to detect crypto manipulation amid broader crackdown on exchanges. South Korea’s Financial Supervisory Service has initiated an investigation into suspicious trading activity surrounding the ZKsync token on Upbit exchange. The digital asset experienced an extraordinary price spike of 970% within three hours on February 1, raising concerns about potential market manipulation. Authorities are examining whether coordinated trading efforts violated the country’s virtual asset protection laws, which carry penalties including imprisonment and substantial fines for offenders. Coordinated Trading Activity Triggers Regulatory Response The ZKsync token began trading at approximately $0.023 on Sunday morning before scheduled maintenance on Upbit, South Korea’s largest cryptocurrency exchange. At 11:30 am, just before the maintenance window commenced, the price surged dramatically to $0.24. However, the token plummeted back to its original price level of around $0.023 by 6:30 pm when maintenance concluded. South Korea’s Financial Supervisory Service is monitoring the market for ZK tokens listed on Upbit, the country’s largest cryptocurrency exchange, following abnormal price fluctuations. On February 1, ZK surged nearly 1000% in just three hours, rising from 33 KRW to 350 KRW,… pic.twitter.com/VFioK2wWMy — Wu Blockchain (@WuBlockchain) February 5, 2026 A spokesperson from the Financial Security Service’s Virtual Asset Investigation Bureau addressed the incident in a statement to Hanguk Kyungjae newspaper. “We are aware that ZKsync experienced a rapid price fluctuation in a short period of time,” the official said. The regulator added, “We a...