The largest cryptocurrency exchange in South Korea Upbit suspected of fraud against her is being investigated. The exchange offices were raided and confiscated computers and accounting records.
Representatives of the exchange assure that client assets are not endangered, and on the exchange’s website posted the following content:
«At the present time in respect of Upbit is under investigation, but we work in a usual mode. Upbit services, including all transactions and withdrawals are functioning normally».
Today Upbit is the fourth-largest cryptanalytic exchange in the world and the largest exchange in South Korea. According to the website Coinmarketcap, the average daily trading volume on the exchange is 1.812 billion. The exchange is in the structure of the Corporation Kakao Corp, which manages the most popular application messenger Kakao Talk.
The suspicion of fraud
Crypto news portal of Korea explains the situation as follows:
«The company [Upbit] is suspected in the transfer of client funds from their cryptocurrency accounts to the accounts of the representatives or managers».
The article says that on may 10 and 11 of the investigative group of the Prosecutor’s office for the southern district of Seoul has sent representatives to the headquarters Upbit for «the seizure of hard drives and accounting documents». In a search involving more than 10 police officers.
«After conducting computer forensics of seized objects and confirm the fraud charges, we will make a decision whether to continue the investigation and in what direction,» said the prosecution.
Charged with cheating customers
«The prosecution believes that the exchange Upbit entered into the computer system, allegedly owning virtual currencies, which in fact she did not have», — said KBS. According to the prosecution, «Upbit is suspected of «trade the trading assets» in the absence of crypto in wallets».
The financial services Commission of South Korea (FSC) and financial Supervisory Service (FSS) conduct an investigation against cryptocurrency exchanges of the country since March of this year. The first target was the exchange Coinnest, whose President, Kim IK-hwan (Kim Ik-hwan) was arrested on charges of embezzlement and fraud. According to Money Today, unlike Coinnest, embezzlement exchange Upbit is not shown.