Four cryptocurrency exchanges, including Bithumb, face class action suit for manipulating coin prices.

Law firm A1 claimed that the four exchanges, including cashierest, coinbit, and coinzest, pumped up the prices of coins through internal trading. During the artificial manipulating of prices, investors were unable to withdraw or deposit their coins. These manipulations have financially damaged investors as the prices have nosedived soon after the internal trading, it added.

A1 also said coinzest and cashierest illegally profited from the coin dividends they received, thus damaging investors. Coin dividend refers to the coins the cryptocurrency exchanges offer to investors in proportion to the number of coins investors have. Coin dividend occurs when the exchange returns the profits to investors.

A1 said cryptocurrencies have already become new investment products. It added virtual currencies are the core component for the development of the blockchain technology. However, the government should introduce regulations and laws to foster the sound market where speculation is discouraged.