Largest South Korean Cryptocurrency Exchange Raided Over Fraud Claims
May 12, 2018
The largest cryptocurrency exchange in South Korea Upbit was raided by the local police over allegations of fraud. The exchange is operated by a subsidiary of a Korean tech giant Kakao and currently sits at the 4th place by the 24-hour trading volume.
Korean law enforcement accuses the exchange of deceiving customers by forging balance sheets. Financial Supervision Commission of South Korea has reportedly sent 10 investigators to the head office of the exchange in Seoul. The commission will soon receive the access to the computer network of Upbit and will be able to examine cryptocurrency reserves of the exchange.
The news affected the market, as prices of almost all 100 largest cryptocurrencies decreased by 15 percent or even more.
Upbit is not the first South Korean exchange, that was raided by the police. In April the co-founder and executive director of the local cryptocurrency exchange CoinNest