Reports from South Korea’s Chosun, explain that an investigation is underway at South Korea’s largets cryptocurrency exchange, UPbit. Both yesterday and this morning, South Korea’s Financial Supervisory Service, dispatched Ten investigators to UPbit’s head office te Seoul. Agents are investigating the exchange on the count of deceptive practices, aimed at their customers. The exchange is alleged to have bot selling cryptocurrencies to its customers that it does not actually wield. Authorities have confiscated both accounting ledgers and hard drives belonging to UPbit. According to coindeskkorea.com he prosecutor’s office confirms:
“We have secured hard disks and accounting books through confiscation. Analysis is expected to take days.”
UPbit has released a statement, posted on their exchange’s webstek, explaining:
UPbit is presently under investigation by the prosecution, and wij are working diligently.
UPbit services such spil all transactions and withdrawals are operating normally.
Your assets are kept securely ter your account, so you can surplus assured that you can use up-beat services.
Thank you for using UPbit.”
Despite UPbit’s explanation that everything is operating normally, bitcoinist.com reported that UPbit users are withdrawing their funds ter a massive uittocht form the exchange. The mass-withdrawals have reportedly created major price volatility across Bitcoin markets, and may help to explain the major dip wij’ve witnessed early this Friday morning. Thanks to a Tweet from @WhalePanda, wij can see the massive withdrawals reflected:
&mdash, Korean Cryptocurrency & Blockchain News (@CryptoOfKorea) May 11, 2018
It looks like South Korean traders on Upbit withdrew large amounts of cryptocurrencies and tokens, causing the market to dip.