Authorities Raid Leading Korean Cryptocurrency Exchange Upbit

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Prosecutors in South Korea are looking into the activities of a top cryptocurrency exchange, Upbit. The platform has reportedly been the subject of fraud allegations.

On May 10 and 11, South Korean authorities visited the Gangnam headquarters of prominent cryptocurrency exchange Upbit, confiscating materials relating to their investigation of the firm.

Reports indicate that the trading platform is suspected of fraudulent activity over inaccurate representations that it allegedly made regarding the amount of cryptocurrency it has in its possession. As far as ETHNews was able to determine, charges had not been formally brought against the exchange or any of its personnel by press time.

A statement was posted on the exchange‘s website today to inform customers that “[Upbit] is currently under investigation,” but that “services such as all transactions and withdrawals are operating normally” and “assets are kept securely in your account, so you can rest assured that you can use [Upbit’s] services.”

While the Korean government has a history of intervening in the cryptocurrency space, motivated initially by concerns around wild speculation and know-your-customer practices that it considered inadequate, several of its more recent actions have been prompted by fraud allegations.

Specifically, officials have conducted raids on three exchanges in addition to Upbit. The CEO of one of those platforms, Coinnest, was arrested on suspicion of embezzlement and fraud as a result of the inquiry into that exchange‘s operations.

Translations by Google.

Adam Reese is a Los Angeles-based writer interested in technology, domestic and international politics, social issues, infrastructure and the arts. Adam is a full-time staff writer for ETHNews and holds value in Ether, Bitcoin, and Monero.

ETHNews is committed to its Editorial Policy

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