Another day, another dramatic event driving the prices in the crypto world. This Friday the 11th of May has been a pretty rough day for the crypto exchanges. A big turbulence in the South Korea’s biggest crypto trading platform Upbit has shaken the market.
Prices of coins have started to crumble after a South Korean news sources had reported that the cryptocurrency exchange Upbit has been investigated by the local police for allegations of fraud. The Upbit’s headquarters in Seoul the capital of South Korea have been raided by investigators.
Upbeat have been blamed for faking its balance sheets and deceiving their investors. A suspicious movement of funds from the exchange to a personal accounts of its executives had been also reported.
The investigation into this unfortunate event is still ongoing and the police has yet to report on the situation of the matter.
The info given from the South Korean authorities had stated:
“We have secured hard disks and accounting books through confiscation. Analysis is expected to take days.”
Adding that the final report on the Upbit case will be released next week.
There has been a statement released from the Upbit’s side too saying:
“Upbit is currently under investigation by the prosecution, and we are working dilligently. Upbit services such as all transactions and withdrawals are operating normally. Your assets are kept securely in your account, so you can rest assured that you can use Upbit services.”
There has been a lot of cracking down on the crypto industry in South Korea in order to combat speculation and combat possible illegal activities such as money laundering. These types of raids had been done over the past couple of months by the Korean authorities on several small crypto venues, ICO’s and financial institutions from domestic exchanges.
Example of a similar event happening in Korea was last month’s investigation on Coinnest. The exchange was charged with embezzlement and fraud, getting their chairman Kim Ik-hwan detained.
The South Korean exchanges have also been listing cryptocurrencies at much higher prices than the exchanges from the other countries. These moves have led the CoinMarketCap team to remove most of the Korean exchanges from their listings.
Although South Korea is a small country it is one of the world’s most significant trading centers taking the third place right after U.S. and Japan.
According to ABC News at least 20% of the cryptocurrency trading in the world is taking place is South Korea.