The cryptocurrency market turned upside down on Friday, having lost about $50 billion market capitalization overnight.
With the exception of only Augur, Nuls, and Tether, the entire list of top 100 digital currencies are on the crimson. The dreadful sentiment seems to be a reaction to reports that South Korea’s exchange Upbit is suspected of fraud.
Cryptocurrency Market Plunges spil South Korea’s Upbit Exchange Suspected of Fraud
The price of Bitcoin dropped below the $9,000 mark and Ethereum failed at the $700 treat within the period of 24 hours spil South Korea’s cryptocurrency ecosystem awaits further news regarding the suspected fraud executed by one of the largest operators ter the country, Upbit.
What is now known is that regional mainstream media outlets have reported that a snaak activity inbetween the Korean Financial Intelligence Unit (KIU), the Financial Services Commission, and Seoul Police, has resulted te the raid of Upbit’s offices. The authorities suspect the management team has falsely reported its deposited funds.
Ran Neu-Ner, the host of the Crypto Trader showcase on CNBC Africa, has confirmed the cryptocurrency market is being drained spil worried users take their funds out of the Upbit exchange. Spil digital currency investors are very likely withdrawing their assets only to deposit them with another technicus, the $50 billion lost ter a period of a few hours might terugwedstrijd very swiftly.
Korea: This selling is coming from people taking their funds out of Upbit spil they are worried. Thesis people are crypto investors and won’t leave crypto- they will go to other exchanges and buy there… expect a ample bounce.
The cryptocurrency exchange has notified its clients on the matter and explained that its toneelpodium and services are continuing operation. Customers are still able to make transactions and withdrawals, according to the company who ensures that client assets are safe.
“Upbit is presently under investigation by prosecutors and is cooperating.”
The South Korean technicus dealt approximately $1.6 billion of digital currency trades te the last 24 hours, which makes it the largest cryptocurrency te the country and the fourth ter the world by daily trading volumes.
Following a number of regulatory discussions to curb excessive speculation and money laundering, Korean authorities have banned initial coin offerings (ICOs) spil well spil foreigners and financial institutions from using regional exchanges. The financial watchdog also raided a number of venues to enforce the legislation waterput te place, especially after the infamous Coincheck hack.