South Korea’s Largest Crypto Exchange Upbit Under Investigation for Fraud


The biggest cryptocurrency trade in South Korea, Upbit, is suspected of fraud and is presently below investigation. The prosecutors have carried out searches on the trade and confiscated computer systems and accounting information.

Additionally learn: Yahoo! Japan Confirms Entrance Into the Crypto House

Upbit Under Investigation

South Korea’s largest cryptocurrency trade, the Kakao-backed Upbit is suspected of fraud, in accordance with native media. Whereas sustaining that prospects’ belongings are nonetheless stored securely, the trade posted the next assertion on its web site:

Upbit is presently below investigation by the prosecution, and we’re working diligently. Upbit companies similar to all transactions and withdrawals are working usually.

South Korea's Largest Crypto Exchange Upbit Under Investigation for FraudUpbit is presently the world’s fourth-largest cryptocurrency trade and the most important in South Korea with a 24-hour buying and selling quantity of $1.812 billion on the time of this writing, in accordance with Coinmarketcap. The trade is affiliated with Kakao Corp which operates the nation’s hottest chat app, Kakao Speak.

Suspected of Fraud

Crypto of Korea defined:

The corporate [Upbit] is suspected of transferring buyer funds from their cryptocurrency trade account to a consultant or govt account…Korean prosecutors have carried out search and seizure in opposition to the nation’s largest cryptocurrency trade, Upbit, on expenses of fraud.

South Korea's Largest Crypto Exchange Upbit Under Investigation for FraudIn line with the publication, the monetary investigation workforce of the Seoul Southern District public prosecutors’ workplace despatched prosecutors and investigators to Upbit headquarters on Could 10 and Could 11 “to safe pc onerous disks and accounting information.” Greater than 10 investigators had been despatched to Upbit, Cash In the present day added.

“After the digital forensics investigation on the seizures [seized items] and confirming the unlawful expenses, we are going to resolve whether or not and in what course we are going to examine additional,” the prosecutors had been quoted saying.

Accused of Deceiving Prospects

Upbit allegedly “pretends to carry [virtual currencies] with out holding digital currencies,” the information outlet famous.

South Korea's Largest Crypto Exchange Upbit Under Investigation for Fraud“The prosecution believes that Upbit has entered [into] the pc system as if it had digital currencies that it doesn’t truly personal, and deceived prospects,” KBS elaborated. In line with the prosecution, the Hankyoreh described, “Upbit has been suspected of finishing up ‘book-trading’ with out holding digital currencies in a pockets.”

The Monetary Providers Fee (FSC) and the Monetary Supervisory Service (FSS) have been investigating home crypto exchanges since March, in accordance with Yonhap Information. Their first goal was Coinnest the place the chairman, Kim Ik-hwan, was detained over embezzlement and fraud expenses. In line with Cash In the present day, not like Coinnest, there isn’t a suspicion of embezzlement with Upbit.

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Photos courtesy of Shutterstock and Upbit.

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