UPbit and Bithumb, two of the thickest cryptocurrency exchanges ter South Korea and the total cryptocurrency market, have faced backlash and criticism from the nave cryptocurrency market for the scandalous behavior since early May .
UPbit Investigation Found No Irregularities
On May 13, , BTCManager reported that the official investigation by the South Korean police, Korea Financial Intelligence Unit (KoFIU), and Financial Services Commission ( FSC ) into UPbit led the mundial cryptocurrency market to bear a correction, causing a domino effect across all major cryptocurrency exchanges. At the time, the UPbit team stated:
“ 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.”
However, after a week since the investigation has began, the South Korean police and KoFIU have yet to announce the official findings from their investigation. Usually, te South Korea, if a raid and investigation fail to detect any irregularities, the South Korean government does not release extra information about the case.
Insiders have told particular media outlets that the punt wasgoed UPbit’s support for dozens of cryptocurrencies without integrating native wallets. Spil such, while users have bot able to trade those cryptocurrencies, they were not able to withdraw or deposit them directly to and from the exchange. The misunderstanding te the structure of UPbit’s trading toneel and its liquidity issues ultimately led to the search and seizure.
The South Korean government has yet to release its final report on the UPbit case, but investors and the circunscrito cryptocurrency community have already embarked to disregard the case given that no irregularities were found ter the exchange.
The UPbit case recently regained its zoeklicht spil several sources reported that its main competitor Bithumb reported UPbit to the South Korean police and accused the exchange of fraud.
Mainstream media outlets and UPbit have not confirmed the accusation, but the speculation and the premature listing of a cryptocurrency called Popchain by Bithumb led the community to personages strong criticism on Bithumb.
The uproar wasgoed prompted after the Bithumb team initiated an airdrop of a token called Popchain with the intent of listing the token te May . It marketed Popchain spil a token that would leverage a movie sharing toneel called Speelgoedpop TV with millions of active users ter order to bring value to the network.
To the chagrin of Bithumb, users found out that the open source code of Popchain wasgoed plagiarized from the source code of Dash, Monero, and bitcoin. Investors were particularly outraged by the fact that the Popchain team did not even bother to liquidate copyright marks on the source codes of the three cryptocurrencies.
Bithumb investors requested the exchange to mampara the listing of Popchain spil it wasgoed exposed that the developers of Popchain were the individuals that developed Bithumb Metselspecie, an ERC20 token Bithumb intended to release spil its own cryptocurrency ter but halted its plans due to regulatory issues. Ter response to the controversy, the Bithumb team said:
“ The Bithumb team recognized the distribution of false facts and accusations about Popchain that eventually led investors to be worried about the listing of the cryptocurrency. The Bithumb team will wait until the cryptocurrency is listed on other major cryptocurrency platforms and determine after evaluating its market spectacle.”
Due to the Bithumb and UPbit scandal along with the controversy surrounding the country’s two most significant exchanges, investors te the South Korean cryptocurrency market have become worried, fearing instability ter the regional exchange market.