DigitalX Denies Hosting Secret VIP Events Amid Trading Surge

Market speculation arose last month over DigitalX's sudden spike in trading share, with reports suggesting a secret VIP event had boosted activity. However, major exchanges including Upbit and Bithumb confirmed they have not held any private VIP trading events for the past three years.

The controversy began when DigitalX's trading volume surged 10-fold on August 24 to 33.02 billion won from 2.91 billion won on August 21, with RLUSD accounting for 91.39% of total trading volume that day. The spike followed a fee-free trading initiative and was later attributed to a VIP event offering additional RLUSD rewards based on trading volume.

DigitalX, which rebranded from Kobit after being acquired by Mirae Asset Group in August, saw its domestic market share jump from 0.57% to 8.96% on the day of the surge. However, as RLUSD trading declined from September 29 onward, the platform's market share returned to pre-event levels.

Legal experts criticized such events for potentially encouraging illegal transactions under the guise of promotions. Hong Pu-reun, a lawyer at Discent Law Firm, warned that these practices could lead to collusive trading and misrepresent market activity through artificial volume. Despite this, DigitalX and other platforms like Coinone refused to disclose details, citing trade secrets.

Finance Minister Cho Jeong-hoon criticized the lack of transparency, stating that hiding VIP events from the public undermines fair markets. Financial regulators acknowledged the need for stricter oversight on promotional practices but noted current self-regulation lacks legal binding power.