Upbit, South Korea’s largest cryptocurrency trade, is being investigated by native police and ten investigators for alleged fraud, native information outlet Chosun reports at the moment, May 11. Upbit is a crypto-only trade run by a subsidiary of Korean tech giant Kakao, and at present the fourth largest crypto trade globally by 24-hour commerce quantity.
Chosun stories that police consider the trade has faked its steadiness sheets and deceived buyers. South Korea’s Financial Supervisory Commission (FSC) reportedly despatched ten investigators to the trade’s head workplaces in Seoul at 10 am this morning, and can entry the corporate’s pc system to audit the trade’s digital forex holdings.
Upbit is just not the primary crypto trade to draw the Korean authorities’ consideration this spring. As Cointelegraph reported in March, the Korean Financial Intelligence Unit (KoFIU) and the FSC introduced a joint investigation into crypto exchanges’ company accounts in Korean banks, citing anti-money laundering (AML) compliance issues.
In April, main Korean crypto trade CoinNest’s co-founder and chief government had been detained on expenses of embezzlement and fraud, for allegedly transferring “billions of won” in clients’ digital belongings into their private accounts. That similar month, 12 crypto exchanges had been ordered to enhance buyer safety of their contracts.