"South Korea's government and main stock exchange have developed and deployed AI-powered tools to detect schemes that aim to send the price of cryptocurrencies and shares soaring so that unscrupulous investors can cash in. Schemes of this sort are known as "pump and dump," and see investors acquire shares or virtual assets, then spread information they hope will induce others to buy them. If the scheme succeeds, the price of the targeted assets often rises."
"Which is probably why the tech developed by Korea Exchange (KRX, the country's main bourse) can scour online posts, YouTube, and even reported cases of spam text messages for evidence of pump and dump schemes. The AI analyzes material it finds online, considers recent stock price movements, and then automatically produces reports indicating stocks that may be the subject of price manipulation schemes so that South Korean authorities can investigate further."
"Also on Monday, South Korea's Financial Supervisory Service (FSS) - the FSC's enforcement arm - announced it has enlisted AI to help it investigate suspicious cryptocurrency trades. The FSS says it already operates a Python-based tool that can conduct large-scale data analysis, automatic calculation of abnormal trading indicators, and visualize trading patterns. Those tools, however, struggle to keep up with high-frequency trades made using crypto-marts' APIs."
South Korea's government and the Korea Exchange have deployed AI-powered detection tools aimed at identifying pump-and-dump schemes that inflate cryptocurrency and share prices for fraudulent profit. KRX's system scours online posts, YouTube, and reported spam text messages, analyzes discovered content alongside recent stock price movements, and automatically generates reports flagging stocks for potential price manipulation for further investigation. The Financial Services Commission expects the tool to shorten analysis time. The Financial Supervisory Service uses a Python-based system for large-scale data analysis, abnormal-trade indicators, and visualization, but it struggles with high-frequency API-driven crypto trades and is developing further AI capabilities and server capacity.
Read at Theregister
Unable to calculate read time
Collection
[
|
...
]