Top South Korean Crypto Exchange Raided by Local Police

Korean Crypto Exchange Upbit Raided Amid Suspicions of Fraud

Korean Crypto Exchange Upbit Raided Amid Suspicions of Fraud

The exchange is the fourth largest cryptocurrency exchange by trading volume, according to CoinMarketCap's rankings of markets with fees.

Cryptocurrency exchanges have been under investigation in Korea since March. However, being world's 3rd largest and South Korea's biggest cryptocurrency exchanges make it a high profile case.

The local authorities searched the exchange's offices on Thursday and Friday, Bloomberg said, citing an unnamed official from the Seoul Southern District Prosecutors' Office.

The Financial Supervisory Commission (FSC) reportedly sent investigators to Upbit's Seoul offices and seized the company's computer system to conduct an audit on the exchange's virtual currency holdings. "Analysis is expected to take days", the authorities said, adding that the final report on UPbit is expected next week.

"UpBit is now under investigation by prosecution, and we are [cooperating] diligently", the company said on its website, according to Google translate.

"Upbit services such as all transactions and withdraws are operating normally". Anonymous sources told Neuner that the investigation revealed a liquidity issue between exchanges in the local market, which ultimately led the authorities to believe UPbit initiated an unauthorized reallocation of client funds. The exchange executives among other staff have been suspected of clearing money from their customers' accounts and then using it to purchase cryptos at other exchanges.

More news: Malicious Siri Commands Can Be Hidden In Songs
More news: Disqualify Sriramulu from contesting polls, Congress petitions EC
More news: Chelsea's Antonio Conte says future will be 'more clear' in next week

Plus, more than 12 cryptocurrency exchanges have also been asked to tighten customer protection.

Some speculate that South Korean may institute a permitting process for cryptocurrency exchanges and ICOs, but, for now, they are choosing to carefully scrutinize those already in operation.

A point worth noticing here is that Kakao, the South Korean Internet giant is behind this exchange.

Moreover, last month the co-founder and the chief executive of another large Korean crypto exchange CoinNest were accused of fraud and having transferred billions of won from clients' accounts to their personal ones.

"As the market continues to mature, these events should grow fewer and farther between, and investors will grow thicker skin".

Recommended News

  • SpaceX makes rocket launches look easy, nails 25th Falcon 9 landing

    SpaceX makes rocket launches look easy, nails 25th Falcon 9 landing

    He's stated that his objective is always to launch exactly the identical booster twice within just 24 hours. SpaceX tweeted a photo of the Falcon 9 as the rocket's first and second stage parted ways.
    All-party meeting to push for 'Ramzan ceasefire', talks with Pakistan

    All-party meeting to push for 'Ramzan ceasefire', talks with Pakistan

    Sethi said militants were demoralised due to Army action and a unilateral ceasefire would ease pressure and allow them to regroup.
    The Premier League weekend analysed through XI players

    The Premier League weekend analysed through XI players

    Guardiola - one of the most cultured midfielders of his generation - was comfortably the most decorated player on the field. It was an old team, 10 or 11 players more than 31 years old and we needed to change that. "One, maybe two (signings)".
  • Australia investigating seven deaths in mass shooting

    A family friend stated that the children were homeschooled for they were diagnosed with Autism, The New York Times reports. Detectives from the Homicide Squad and Forensic Crime Scene Unit have travelled to the scene as part of the investigation.
    Solo: A Star Wars Story - 10 Early Reactions You Need To See

    Solo: A Star Wars Story - 10 Early Reactions You Need To See

    I look forward to seeing what Disney can do with these additional Star Wars TV series and get the opportunity to step into the universe more in the future.
    Putin, Merkel agree to galvanize work in Normandy format

    Putin, Merkel agree to galvanize work in Normandy format

    President Donald Trump , a longtime critic of the 2015 accord, announced on May 8 that the United States was pulling out, citing what he said were major flaws.
  • R. Kelly's management criticizes Spotify

    R. Kelly's management criticizes Spotify

    Afterward, there were some people who agreed with the rapper's point since he hasn't been convicted of any of the charges yet. Aishah White, a spokeswoman for XXXTentacion , told the New York Times via email: "I don't have a comment, just a question".
    Solai killer dam was illegal even as death toll reaches 44

    Solai killer dam was illegal even as death toll reaches 44

    The tragedy was made all the more devastating since the dam burst at night when locals were sleeping and could not escape. More than 150 people have been killed and 300,000 displaced in Kenya, where the damage runs into millions of dollars.
    U.S.  to North Korea: No Sanctions Relief Until Permanent, Verifiable Denuclearization

    U.S. to North Korea: No Sanctions Relief Until Permanent, Verifiable Denuclearization

    The United States aspires to have North Korea as a "close partner" and not an enemy, the U.S. secretary of state has said . Trump will make a breakthrough to achieve our goals".
  • Cavaliers vs. Celtics Game 1

    Cavaliers vs. Celtics Game 1

    Windhorst said much will depend on what the Cavaliers do with the first-round draft pick they acquired from the Brooklyn Nets. They had to tear up the roster on February 8 when neither Lue nor the players could make the mix of talent here work.
    'Brooklyn Nine Nine' Could Be Finding A New Home Following Fox Cancellation

    'Brooklyn Nine Nine' Could Be Finding A New Home Following Fox Cancellation

    The show airs Sundays on Fox at 8:30 pm E.T., and hopefully those won't mark the series' final episodes. Hulu is probably the front-runner because they have the streaming rights (SVOD) to Brooklyn Nine-Nine.
    SpaceX to launch 'Falcon 9 Block 5' on Thursday

    SpaceX to launch 'Falcon 9 Block 5' on Thursday

    At T-16mins, fueling of the second stage with LOX will commence. -More thrust produced by the rocket's nine Merlin main engines. The satellite is expected to bring Ku-band coverage to Bangladesh and the Bay of Bengal in addition to surrounding countries.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.