Experts te the cryptocurrency sector of South Korea have stated that it will be difficult for the government and circunscrito financial authorities to verkeersopstopping charges against UPbit, South Korea’s thickest cryptocurrency exchange, given that no investors were affected.
Funds Existente, No Investors Affected
Last week, CCN reported that UPbit wasgoed raided and investigated by tópico police, Korea Financial Intelligence Unit (KIU) and Financial Services Commission (FSC) due to suspicions of fraud. Lugar financial authorities accused UPbit of inflating its cálculo sheet and claiming to have more funds te various cryptocurrencies than their presente amount.
On May 15, various sources confirmed that an audit done by a major accounting rock-hard ter South Korea known spil Yoojin found that the funds recorded on the cálculo sheet of UPbit exactly matched the coetáneo holdings of the company and proved that the company is solvent.
“Since early , UPbit created snapshots of its multi-signature wallets and funds stored within them for auditing purposes. Yoojin accounting rock-hard, a major accounting rock hard based te Seoul, confirmed that all of the funds on the UPbit podium match the cryptocurrency holdings of UPbit stored te its multi-signature wallets,” MoneyToday reported.
The kwestie is said to have bot caused by the lack of wallets for dozens of cryptocurrencies. UPbit has more than 130 cryptocurrencies listed on its toneelpodium but only 90 cryptocurrencies have native wallets that permit users to withdraw and deposit directly from and to UPbit. Te order to withdraw the other 40 cryptocurrencies, users are required to convert to major cryptocurrencies like bitcoin and Ethereum.
Insiders have claimed that the police investigation has found no irregularities and due to the official audit report released by Yoojin, the cryptocurrency market of South Korea has already embarked to recover.
Earlier this week, on May 20, ter an vraaggesprek with Korea Herald, an insider stated that the authorities will not be able to bring any charges against UPbit because no investors were affected ter any way.
“As no investors seem to have bot affected by Upbit’s alleged business practices, it would not be effortless for the authorities to bring any charges to bear,” said the source , who asked to remain anonymous due to the sensitivity of the punt.
The accomplished added that albeit the investigation has ultimately found no irregularities, it has significantly impacted the regional cryptocurrency market te a negative way, leading investors to lost trust ter the market.
“But a series of prosecution probes into the exchanges did effectively hurt the overall credibility of the industry,” the insider added.
Difficult to Regain Investor Trust
Oh Jeong-geun, a professor at Konkuk University, one of the most prestigious colleges te South Korea, stated that the investigation would cause investors to leave the cryptocurrency market permanently and to recover from it, both the exchanges and authorities will have to lead an initiative to coax investors that it is safe to invest ter the market. Professor Oh said:
“Along with diversification efforts, priority should be waterput on ensuring the slick operation of their trading systems te order to ensure their growth potential. Lack of reliability would cause investors to leave the market forever.”