South Korea Flags ZK Token After Extreme Price Surge on Crypto

South Korea’s Financial Supervisory Service has stepped in swiftly. The regulator began active monitoring immediately. ZK tokens showed extreme volatility. Prices surged without warning. The move raised serious red flags. Therefore, authorities increased scrutiny. The incident unfolded rapidly. Market stability became a concern.

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

Timeline of the Abnormal Price Movement

ZK traded near thirty-three Korean won initially. Then prices exploded sharply. The token surged almost one thousand percent. This jump occurred within three hours. Prices peaked near three hundred fifty won. Trading volume spiked aggressively. The surge happened during exchange maintenance. Soon after, prices crashed violently.

Upbit dominates South Korea’s crypto market. It handles the largest trading volumes. Therefore, any anomaly matters greatly. Thin liquidity likely amplified the move. Maintenance windows reduced order depth. As a result, small trades caused large price swings. This structure increased manipulation risks.

AI Surveillance and Regulatory Tools

The FSS recently upgraded its monitoring systems. It now uses the VISTA platform. The system relies on artificial intelligence. It scans trades in real time. Sliding-window algorithms flag not a normal behavior. Historical manipulation data trains the models. Therefore, detection now happens faster. Regulators respond proactively.

Investigators now examine wallet activity closely. They analyze trade sequencing carefully. Authorities suspect wash trading patterns. Coordinated pump behavior remains under review. Regulators also inspect exchange logs. Similar incidents triggered reforms before. Past events shaped strict investor protections. This case may reinforce enforcement again.

Broader Impact on the Korean Crypto Market

South Korea enforces strong market discipline. Regulators act quickly during volatility. This response reassures investors. It discourages reckless trading behavior. Therefore, transparency remains critical. Exchanges face higher compliance pressure. Tokens with weak liquidity face scrutiny. Market maturity continues improving steadily.