UPbit Exchange Raided – Illegal Transfer of Funds and Seized Hard Drives

According to CoinDesk, the largest cryptocurrency exchange in South Korea, UPbit, has been raided by prosecutors.

The prosecutors claim that they have searched the head office of the exchange in the Gangnam-gu district on May 10-11, states CoinDesk Korea.

The reason for this raid is UPbit’s alleged fraud of selling cryptocurrencies that it does not possess.

Prosecutor’s Office stated:

"We have secured hard disks and accounting books through confiscation. Analysis is expected to take days."
UPbit representative when asked to comment situation said: "At this time, I can not answer anything about this seizure."

Due to regulations getting strict in the country, the prosecutors have been investigating numerous cryptocurrency exchanges. In March, the prosecutors have raided three unidentified crypto exchanges because they were suspected of sucking funds from customers’ accounts.

Also, reddit user CheslinK shared a Tweet from Korean Cryptocurrency & Blockchain News channel. The tweet contains a link to a Crypto of Korea news website, where more information is given on the situation.

According to the Crypto of Korea, UPbit crypto exchange is allegedly transferring funds from customers’ accounts to one of their representative’s or executive’s account.

The prosecutors have taken hold of the company’s hard drives and accounting records. They claim that the company has been siphoning funds from customers’ accounts to a separate one which should belong to the executive of UPbit, reports Crypto of Korea.

Also, some reddit users claim that the difference in prices is massive:

Massive price difference right now. Upbit is trading about 2.5% less than Bithumb. Also not letting me make crypto withdrawals at the moment. Just hoping they don't freeze everything. [loveinjune]

Furthermore, UPbit has been involved in previous disputes. According to blokt, UPbit was in the spotlight of a controversy which took place in December 2017. UPbit refused to join other exchanges in South Korea to support self-regulation.

Visit Tokenlion

Follow us on Twitter and Facebook!

Sources:
CoinDesk
Crypto of Korea
Reddit
Blokt