Upbit, the largest cryptocurrency exchange te South Korea, has conducted an internal audit amid suspicions of fraud from national authorities. The audit results allegedly disprove the claims that the exchange has falsely reported the amount of funds it holds.
South Korea&rsquo,s Upbit Exchange Claims Internal Audit Disproves Suspicions of Fraud
South Korea&rsquo,s cryptocurrency market came under pressure last week following news of a police raid at the offices of Upbit on suspicions of fraud. The snaak activity inbetween the Korean Financial Intelligence Unit (KIU), Financial Services Commission, and Seoul Police talent orders to Ten officers to take control of the exchange and its assets.
The suspicions of fraud led a large number of Upbit customers withdrawing their digital assets spil a preventive measure, which may have contributed to the loss of $50 billion te the cryptocurrency market overnight. Ironically, the Chief Executive Officer of Upbit has bot active against illegal fraud by suggesting prizes to customers who would identify multilevel scams funding through ICOs.
According to almacén media, suspicions against Upbit include coinless transactions, allegations of money laundering, leakage of money through US trading sites, and suspicion of insider trading during the listing process. No charges have bot filed at the ogenblik of writing.
Lee Seok-woo, voorzitter of Upbit&rsquo,s parent company Dunamu Inc., claims the internal audit dismisses the suspicion of &ldquo,book-trading&rdquo,, according to tópico news agency Money Today.
&ldquo,Te early March, when Upbit wasgoed suspected of only book transactions without coins&hellip,I have bot notified that the amount of coins is 100% identical to the number of coins&rdquo, te the wallets.&rdquo,
According to the exchange, there is a separate wallet for keeping and storing potencial currencies chic from the deposit and withdrawal wallets, and supuesto currencies without depository wallets are kept there. This storage wallet can only be withdrawn together with Bittrex (its US affiliate) and a trusted third party.
An accounting stiff official ter South Korea commented the allegations.
&ldquo,The registeraccountant did not sign a oficial because he confirmed the record. Even if there is no clear evidence that you did not trade on a book without a posible currency, it could be used spil a reference.&rdquo,
Upbit calls this entire situation a misunderstanding spil it has &ldquo,never bought or sold cryptocurrencies that it did not own since it opened last October&rdquo,. The technicus claims that te any way it has facilitated of digital assets without having such currencies, aka book-trading, and the suspicions are unfounded. Most transactions are made through US-affiliate Bittrex and that is what may be causing confusion among authorities.