- South Korea’s exchange, UPbit raided by authorities
- Executives suspected of embezzlement
Kakkao, biggest messaging app developer backed, UPbit, has grown itself to a known exchange of South Korea. In a short period, it has grown to handle $2 billion trading volume.
Earlier today, the exchange was raided by authorities with the suspicion of transferring funds from customers account to UPbit executive’s account.
It’s been a surprise to many, since Kakkao, an established company and chat app is its parent company. It is the key reason behind UPbit to gain popularity in short span.
“Upbit is currently under investigation by prosecutors and is cooperating,” the exchange said in a notice to clients.
Exchange headquarter’s in Gangnam was under investigation this Thursday and Friday, said Seoul’s Southern District Prosecutors’ Office, without revealing any further information.
Reports suggest that authorities have seized accounting records and computer hard disks belonging to the exchange.
Upbit, is not the only exchange under investigation. Authorities have been investigating from March 2018, starting from Coinnest.
As a result, its chairman, Kim Ik-hwan, was in custody for fraud and embezzlement in April. Though, Coinnest seems to be operating normally.
Reuters says in total “four executives from two other South Korean cryptocurrency exchanges were detained in April in connection with the alleged embezzlement of billions of won.”
Upbit has stated trading and withdrawals are not under any impacted from investigation and all the funds are reported to be safe.
These can be considered as the investigation of South Korea’s regulation of exchanges.
In contrast to other regulatory approaches, South Korea demands traders verification through bank branches or bank accounts.
Such stricter law has allowed them to keep an eye on money inflow, with any embezzlement thus seemingly quickly identifiable.