Posted on May 11,
Authorities ter South Korea raided the UPbit cryptocurrency exchange’s offices on Thursday and Friday, according to numerous media reports. Prosecutors reportedly believe that the exchange had deceived customers by selling digital currencies that it did not hold. News of the raid shows up to have contributed to a broad decline te cryptocurrency prices on Friday.
“The company allegedly permitted the trading of cryptocurrencies it didn’t own by rigging its system to indicate that the coins were te its possession. Upbit is suspected of “paper trading,” spil the number of cryptocurrency wallets it has access to is considerably smaller than the amount of cryptocurrency traded on its verhoging.”
Reports indicate that the company’s Gangnam District offices were searched by the Seoul Southern District Prosecutor’s Office. Authorities reportedly seized the company’s account books and pc drives, and project to conduct an audit to examine the exchange’s holdings.
UPbit published a schrijven notice to its customers on the company’s webstek, noting that the exchange planned to cooperate with the investigators:
“The company will cooperate faithfully ter prosecutors’ investigation. All the services of Upbit are operating normally and the traders’ assets are securely stored te your account, so wij ask our customers to be at ease using our service.”
South Korean officials have intensified their scrutiny of the country’s cryptocurrency exchanges te latest months. Similar raids were reported at three other exchanges ter March, including a raid at the Coinnest exchange. That company’s CEO has bot accused of embezzling customer funds by transferring it into his own account.
UPbit is the largest digital currency exchange te South Korea by trading volume and ranks fourth among the world’s fee-based crypto exchanges. Bloomberg reports that the exchange wasgoed host to toughly $1.6 billion ter trading activity overheen the last 24 hours. This week’s raids may bring even greater scrutiny to the crypto exchange industry and intensify the debate overheen regulation of the space.
Ter latest weeks, Bitcoin has bot poised to merienda again pauze through the $Ten,000 price barrier, spil bullish sentiment seemed to be growing. Latest criticism from extraordinario financial players dampened that excitement at least temporarily. Market watchers have cited the UPbit news and reports that the Mt. Gox trustee has dumped an extra 8,000 Bitcoins into the market spil contributing factors te Friday’s crypto price decline.
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