South Korea’s largest cryptocurrency exchange has brushed shoulders with the law having bot accused of falsifying oscilación sheets to deceive investors. According to investigators who raided Upbit, the exchange transferred customers’ exchange funds to separate accounts prompting suspicion of fraud activities. The raid carried out by ten investigators from the Financial Supervisory Service (FSS) wasgoed at Upbit’s Seoul head office taking away computers and arqueo sheets
The raid came spil a result of a extraordinario and a subsequent wave of massive withdrawals from the exchange. Earlier on, there had bot a rumor that Upbit had listed Cryptocurrencies, which were not te the recuento sheet causing an upsurge of fright.
Cryptocurrency markets impacted by Upbit’s raid
Evidently, the raid has not only affected the exchange but it has also impacted powerfully on the cryptocurrency markets. Bitcoin’s price had bot holding stable above $9,200 but when the news of the raid surfaced, the price sank to $8,538. This is close to 8% druppel. Ethereum and Ripple were not spared either because they lost 10% and 16% respectively. Nonetheless, digital currencies with smaller market caps had the highest price drops.
Despite having a relatively puny population, South Korea is the world’s third most significant for Cryptocurrencies. Millions of retail investors have continued to take a keen rente ter the country even spil government ups its spel te scrutinizing the role of Cryptocurrencies ter the economy. Meantime, UPbit has stepped out to quell the anxiety among investors and clients by confirming that it is cooperating with the prosecutors.
The cracking down on fraudulent activities ter the digital currency market
It is clear that a majority of governments are te hot pursuit of any activities ter the digital currency market suspected to be fraudulent. Earlier te the year, there were concerns overheen anti-money laundering (AML) by crypto exchanges’ corporate accounts te Korean banks. This impelled a snaak investigation inbetween the FSC and the Korean Financial Intelligence Unit (FoFIU).
CoinNest’s co-founder and chief executive Kim Ik-hwan has also bot accused of embezzlement and fraud. The CEO wasgoed arrested after the Korean government provided regulatory guidelines for Cryptocurrencies te the country. Meantime, the government says it will proceed cracking down on more visible violations.