Prosecutors raid South Korea's biggest cryptocurrency exchange: Yonhap

Irene MckinneyMay 13, 2018

Authorities searched the exchange's offices on Thursday and Friday, according to an official from the Seoul Southern District Prosecutors' Office, who asked not to be identified citing office policy. The awful sentiment seems to be a reaction to reports that South Korea's exchange Upbit is suspected of fraud. Upbit is the largest exchange in Korea, so this raid will inevitably send shockwaves through the crypto industry in East Asia.

The cryptocurrency market has fallen by large margins after UPbit, South Korea's biggest cryptocurrency exchange and formerly the world's second-largest trading platform, was raided and investigated by local police on May 11, 2018.

The company [Upbit] is suspected of transferring customer funds from their cryptocurrency exchange account to a representative or executive account...

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

The South Korean operator dealt approximately $1.6 billion of digital currency trades in the last 24 hours, which makes it the largest cryptocurrency in the country and the fourth in the world by daily trading volumes.

Upbit was raided for suspected fraud in a joint action between the Korean Financial Intelligence Unit, Financial Services Commission and Seoul Police. The company added that services such as transactions and withdrawals were unaffected and client assets were safe.

"After the digital forensics investigation on the seizures [seized items] and confirming the illegal charges, we will decide whether and in what direction we will investigate further", the prosecutors were quoted saying.

"We found some circumstantial evidence that shows Upbit sold a larger amount of crypto coins than it actually owned in the early business phase", an official from the prosecutors."
The FSC will be investigating UpBit's computers to audit whether or not the exchange was lying to the authorities.

Image courtesy of Coinmarketcap and Shutterstock.

Following news of an exchange raid in South Korea, Bitcoin's price is holding steady.

Related Articles:

« Previous article
Next article »

Popular Pages

One killed in Paris knife attack
France has been repeatedly targeted by IS and experienced multiple deadly attacks. "France once again pays the price of blood". The Paris prosecutor arrived at the site of the attack, on rue Monsigny, near many bars and theaters as well as the opera.

Meet The Super Smash Bros. Invitational 2018 Competitors
Arguably the best player in Wii U history, he was won a multitude of titles over his career including EVO 2015 and GENESIS 3. E3 2018 is kicking off on June 12th, and Nintendo aims to blow the doors off of the new Smash Bros . game during the expo.

Congo army, park rangers search for kidnapped British tourists
Two British tourists are among three people to have been kidnapped in a national park in the Democratic Republic of Congo (DRC). The incident took place just north of the city of Goma, North Kivu province.

One week away from the Royal wedding
There is even a promise of confetti for train travellers hoping to catch a glimpse of the couple on their wedding day . Markle's parents have arrived ahead of the May 19 wedding, at which they are both playing important roles .

Gardner, Judge rally Yanks past Sox
Green, who came in with a 1.96 ERA in 15 appearances, relieved Masahiro Tanaka with a runner on third and one out in the sixth. You don't see any panic, ever. "It doesn't matter if it's the eighth or ninth inning, especially in situations like that".

Merkel slams Trump for 'harming' global order
Erdogan described Trump's decision as "wrong" and added that the US will be the "main loser" by such a decision. European countries say Trump's decision will raise the risk of conflict in the region.

Malaysian king to pardon Anwar
Each evening at 1830 UTC, DW's editors send out a selection of the day's hard news and quality feature journalism. He said his four-party alliance will hold a meeting on Saturday to name the ministers.

BoE Delays Rate Hike, Lowers Growth Expectations
The pound nosedived yesterday as the BoE's Monetary Policy Committee (MPC) voted 7-2 to leave interest rates on hold in May. Financial markets price in a roughly 65 percent chance of a rate rise by then, according to interest rate futures.

China welcomes DPRK and USA leaders summit in Singapore
Pompeo says the goal of talks with North Korea is complete and verifiable denuclearization of the Korean Peninsula. But despite the optimism of that moment, all efforts to limit North Korea's nuclear program have, to date, failed.

Raptors Fire Head Coach Dwane Casey
DeRozan credited Casey with all of his success and Lowry said he was "one of the best coaches out there". The Raptors' record improved in six of seven seasons under Casey.