Upbit, South Korea’s largest cryptocurrency exchange toneel, is presently under investigation spil it is suspected of engaging ter false financial reporting activities, deceiving investors te the process spil the price of bitcoin cracks below $9,000.
Locorregional media outlets te South Korea also report that the exchange’s office has bot raided. The latest development goes after is the a series of crackdowns from law enforcement agencies on cryptocurrency exchange platforms. Ter April, the voorzitter of Coinnest, another exchange ter Korea wasgoed also arrested.
Upbit HQ Raided
A snaak team of the Seoul police, the Korean Financial Intelligence Unit (KoFIU), and the Korean Financial Services Commission (FSC) conducted a raid on the Upbit headquarters ter the Gangnam. The law enforcement and financial regulatory officials confiscated both paper and digital records and are reportedly te the process of combing through the loterijlot to obtain evidence.
The raid took place on May Ten, , and recinto police have declined to give any comment other than to say that the matter wasgoed still under investigation.
Reports making the rounds te the country expose that the Upbit is being investigated for engaging ter illegal movement of cryptos from the wallets of their clients. The podium is also accused of altering their books to hide their wrongdoing. According to news sources, authorities suspect that client funds are being moved to wallets possessed by executives of the toneel without the skill of the depositors. An audit of Upbit’s holdings is already underway to determine the platform’s culpability.
Rumour ter the air is that Vice-Chairman of Etoday, who most likely takes major decisions at Bithumb wasgoed behind this news since it wasgoed very first covered by Etoday. Bithumb is one of the largest Korean crypto exchange and competitor of Upbit.
Upbit has confirmed the investigation with a statement on its webstek, telling:
“Upbit is presently under investigation by the prosecution, and wij are working diligently. Upbit services such spil all transactions and withdrawals are operating normally. Your assets are kept securely te your account, so you can surplus assured that you can use Upbit services.”
Crypto Community Reaction
Reactions from the crypto community on social media and online message boards are split inbetween worry overheen the potential influence on crypto prices and notions that it is a bit of an exaggeration.
Some analysts believe that regulatory scrutiny often has a negative effect on the market. Indeed, some of the more significant crypto price bombs have come on the back of regulatory crackdowns. Thesis interventions of oversight agencies tend to stomen the level of enthusiasm ter the market which usually devolves into scare selloffs. Other analysts have announced that the market reaction is a bit exaggerated given that the podium is still operational.
Bitcoin Price Drops Below $9,000
Crypto prices have declined within the past 24 hours, and the situation with UPbit is seen by some spil being connected. The price of bitcoin has dropped below $9,000 since May Ten, a decrease of more than seven procent from the end of May 9, .
BTC-USD succesnummer a low of $8,400 on the Bitstamp exchange on May 11. BTCManager’s latest weekly crypto market outlook highlighted $8,537.58 spil an significant support level, so spil long spil this level holds, wij should see an upward stir overheen the coming days. A daily close below $8,537.58 would suggest a fresh trend formation according to the daily Renko chart, injecting into a downward trend. Weekly support is found at $8,188.07.
Ethereum’s ether, spil well spil many of the top 100 cryptos, have also declined within the last 24 hours.
Negative comments from Bill Gates, Charlie Munger, and Warren Buffett, spil well spil reports that the Mt. Gox trustee is set for another massive sell off, may have also contributed to the decline.
The decline ter crypto prices comes spil the industry gets set for the edition of the Blockchain Week ter Fresh York, a period that historically preceded rallies ter the crypto market.