South Korea’s Upbit exchange claims internal audit disproves fraud suspicions

Raid of company’s offices could be the result of misunderstanding

South Korea’s Upbit exchange claims internal audit disproves fraud suspicions

South Korea’s largest cryptocurrency exchange, Upbit, has conducted an internal audit disproving suspicions of fraud, industry website The Cointelegraph has reported, citing reports from the local press.

It was reported last week that Upbit’s offices have been raided by South Korean prosecutors. Subsequent reports stated that South Korea’s financial regulators, including the Financial Supervisory Service (FSS), had launched an investigation into potential liquidity issues at Upbit. The reports said that the prosecutors suspected that the company sold more cryptocurrencies than the amount it had reported, a practice that is deemed illegal by the FSS.

Citing Upbit’s chief executive officer, local news outlet Naver yesterday reported that the company’s internal audit had shown that its cryptocurrency holdings are real and its ledgers are “100%” synced with its wallets. Meanwhile, comments in the social media suggest that the raid was the result of a government misunderstanding over mmultiple wallets.  However, Upbit has so far not released the results of the audit to the public.

Upbit is one of the largest cryptocurrency exchanges in the world, supporting a multitude of cryptocoins across more than 250 trading pairs. According to data from cryptocurrency tracker Coinmarketcap, the exchange has processed nearly $1 billion in the past 24 hours, which makes it the fifth-largest crypto trading platform in terms of trading volume, behind OKEx and Binance, Huobi and Bitfinex.

The news about the raid contributed to the massive sell-off that hit the cryptocurrency market on Friday and Saturday. While the digital currency space has since tried to recover from the slump, but all attempts have so far been unsuccessful. Bitcoin, the No. 1 cryptocurrency, has fallen below $9,000 following the raid, with its price currently hovering around $9,215, its lowest level since April 19. Other major digital coins like Ethereum, Ripple and Litecoin, have also seen significant losses.

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