South Korea deploys real-time AI crypto surveillance

South Korea’s Financial Supervisory Service has deployed a real-time AI system that scans trading data, news and online content to flag suspected crypto price manipulation. Summary Generative AI and machine learning will screen trades, news, exchange notices, and online discussions. The platform targets rapid price manipulation, wash trading, collusive activity, and false promotional claims. Human investigators will review AI-generated reports before opening a detailed analysis or formal investigation. Future updates will add cross-exchange fund-flow analysis and on-chain transaction tracking. AI crypto surveillance screens price and volume spikes The Financial Supervisory Service said in its Aug. 20 announcement that the platform combines generative AI with machine learning to automate parts of a process that previously required investigators to examine large volumes of exchange data manually. Built around real-time trading information, the system first searches for assets showing abnormal changes in price or volume. It then compares the activity with patterns drawn from the regulator’s previous investigations, allowing staff to focus on trades that share features with known forms...