South Korean authorities crack down on Bitcoin scams

     With so many altcoins flooding the market, some investors are having trouble distinguishing which ones are legitimate and which are bitcoin scams. In South Korea, law enforcement officials have begun investigating alleged pump-and-dump scams that artificially boost demand and trading volume.

     In addition, the Bank of Korea has also expanded its support for regional governments caught up in Bitcoin scams and related Ponzi schemes. According to coinmarketcap.com, there are about 700 altcoins, but less than half of them have sufficient trading volume and liquidity.

Bitcoin scams in South Korea

     To aid in the investigation, the Bank of Korea plans to provide the necessary infrastructure and technology to help local police detect Bitcoin scams and frauds. Currently, the central bank and authorities are paying close attention to altcoins that have been created and traded in the past few months.

     Law enforcement agencies also paid special attention to altcoins that had seen a significant decrease in trading volume over the past 48 hours. By doing so, they were able to weed out cryptocurrencies that were likely to be inflating their prices.

     To protect yourself from being victimized by Bitcoin scams, you must ensure that the cryptocurrency you invest in has sufficient volume, social support, and transparency.