ACE Market Manipulation: Spoofing and Wash Trading Explained

03 April, 2025, 08:29 AM

## Understanding ACE Market Manipulation Techniques Recent revelations from the Fusionist (ACE) market manipulation trial have shed light on specific tactics used to artificially inflate trading volume and deceive investors. Prosecutors have identified two key techniques: spoofing and wash trading. Spoofing, as described in the trial, involves placing "hit" orders designed to create the illusion of strong buying interest. These orders are not intended to be filled but rather to entice other investors to buy, driving up the price. Once the price increases, the perpetrators profit by selling their holdings. Wash trading, on the other hand, involves buying and selling the same asset simultaneously to artificially inflate trading volume. This gives the impression of high demand and liquidity, attracting unsuspecting investors. In the Fusionist case, the defendants allegedly secured an unfair profit of 7.1 billion won through these deceptive practices. Understanding these techniques is crucial for investors to identify and avoid potential market manipulation schemes within the digital asset space and other markets. ```