The largest cryptocurrency market in South Korea, Upbit, is suspected of fraud and is currently under investigation. Prosecutors have searched the stock market and confiscated computers

05/11/2018

According to local media, in South Korea, the largest cryptocurrency market, supported by Kakao Upbit is suspected of fraud. While maintaining that clients’ assets are still safely stored, the stock exchange has posted the following statement on its website:

Upbit is currently being reviewed by the prosecutor’s office and we’re working on clarifying the whole situation. Upbit services, such as all transactions and withdrawals, operate normally.

Upbit is suspected of transferring clients’ funds from their cryptocurrency account to the account of a representative or contractor. Korean prosecutors conducted a search and took the country’s largest cryptocurrency exchange on charges of fraud.

“After investigating seizures of seized objects and confirming alleged allegations, we will decide whether and in which direction we will carry out further investigation” – said one of the prosecutors.

“The prosecutor’s office thinks that Upbit has entered the computer system as if it had virtual currencies that it does not actually have, and fooled the clients,” explains KBS. According to the prosecutor Hankyoreh, who wrote: “Upbit was suspected of carrying out” book trading without holding virtual currencies in the wallet ”

According to Yonhap News, the Financial Services Commission (FSC) and the Financial Supervisory Authority (FSS) are investigating national cryptocurrency exchanges since March. Their first target was Coinnest, where the chairman, Kim Ik-hwan, was detained in connection with fraud. According to Money Today, unlike Coinnest, there is no suspicion of misappropriation by Upbit.