Korea's largest crypto exchange Upbit raided by police causing markets to crash
May 13 2018
Upbit exchange officially announced on its platform that it is undergoing investigation, though services are allegedly operating normally.
Upbit launched a year ago in October. According to Chosun, the investigators seized hard drives and accounting records between the dates of May 10th and May 11th.
There are varied opinions across Twitter from crypto enthusiasts as to what occurred and what investors responses should have been.
"The top digital token broke its streak Friday after South Korean prosecutors raided the offices of Upbit, one of the world's largest cryptocurrency exchanges, renewing concerns that heightened regulatory scrutiny around the world could hurt business and dampen enthusiasm for digital assets", reports Bloomberg.
The investigation into UPbit could lead to two potential outcomes: Local authorities discover evidence of fraudulent activities and the board replaces its executive team or as Neuner stated, the investigation ends with a simple liquidation issue and a bank mishap, which can be quickly resolved. "Your assets are kept securely in your account, so you can rest assured that you can use UPbit services". This return coincided with a considerable increase in average prices and total market capitalization values.
The reaction from the crypto community to the news followed the established script - panic. To investigate about this matter South Korea's Financial Supervisory Commission (FSC) took over.
Some speculate that South Korean may institute a permitting process for cryptocurrency exchanges and ICOs, but, for now, they are choosing to carefully scrutinize those already in operation. Finally the third down trend came with the announcement of the raid on the South Korean exchange.
Moreover, last month the co-founder and the chief executive of another large Korean crypto exchange CoinNest were accused of fraud and having transferred billions of won from clients' accounts to their personal ones.
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