Author: Kellah Ghee, Philippines
Chosun, a Korean based news site, reported on May 11 that UPbit, the largest crypto exchange in South Korea, was under suspicion of alleged fraud and was being investigated by the prosecutors and the local police.
Financial Supervisory Service of Korea has said that 10 investigators handled the case at the UPbit’s head office that is located in the district of Gangnam-gu on May 10 to 11, stated by the CoinDesk Korea.
The police investigated it by hacking into the UPbit’s main computer system.
“We have secured hard disks and accounting books through confiscation,” mentioned by the Prosecutors’ Office.
According to Chosun reports, the exchange was done by using fake balance sheets that led to outwit and tricked their investors. Due to the sudden outburst of this news, social media such as Twitter has made an impact on the cryptocurrency market down by 15 percent.
However, UPbit has confirmed and reassured their customers that the investigation will not hinder their services and will still be operational.
“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.”
In a news report of Cointelegraph, these series of fraud cases started in March. Korean Financial Intelligence Unit or KoFIU and the FSC worked together in investigating the crypto exchanges of Korean banks.
Three offices of crypto exchanges were raided by the prosecutors in March. In the following month, Kim Ikhwan, co-founder and chief executive of CoinNest, was found guilty due to the charges of embezzlement and fraud.
A dozen of the crypto exchanges corporations were also reported in April that has been charged with the same case on that single month alone.