UPbit, the largest South Korean exchange of cryptocurrency, is being investigated for fraud and deception of investors. Prosecutors and investigators entered the offices of UPbit and confiscated computer equipment and internal accounting documents. The situation could turn into a significant story in South Korea, as UPbit is supported by Kakao, a company that manages several very popular Internet services in the country. The exchange recognized the investigation publicly, informing its clients:
“UPbit is currently under investigation, and we work diligently. UPbit services, such as all transactions and withdrawals, work fine.”
Currently, UPbit is the fourth most downloaded cryptocurrency exchange in the world, which processes almost 2 billion dollars in the last 24 hours. According to the report of the South Korean news publication Chosun, the exchange is suspected of manipulating its balances.
Regulatory actions of South Korea in the field of cryptocurrency were widely covered and became part of a memorandum in the community of cryptocurrencies, as users quickly note negative news out of the country like “South Korea FUD”. FUD is a popular acronym and means “fear, uncertainty and doubt”, referring to news that threatens to have a negative impact on prices.
In South Korea, all virtual bank accounts used for transactions with the exchange of cryptocurrencies must now have a real identity tied to them after regulators tightened control over the emerging sector of crypto assets.
Today, we see a significant decrease in cryptocurrency valuations, and the situation of UPbit is widely discussed as a possible trigger for the sale. Most of the top 100 cryptocurrencies fell by more than 10%. Bitcoin’s day wasn’t as catastrophic as some of the others, dropping “only” by 5.89%, as funds enter the BTC, which many investors consider more secure than other crypto assets. As a result, the dominance of Bitcoin received a significant bump and now stands at 38.2%.