Upbit Cryptocurrency Exchange Raided by South Korean Authorities

Before the clampdown, South Korea was something of a ground zero for the global crypto-mania. In spite of the raid the exchange traded $1.6 billion worth of coin during the last 24 hours.

There are varied opinions across Twitter from crypto enthusiasts as to what occurred and what investors responses should have been.

The prosecution plans to question Lee Seok-woo, the former CEO of KakaoTalk, who now heads up Dunamu, to see whether he was aware of the alleged illegal trading. Meanwhile, other outlets are reporting that the Upbit committed fraud by selling customers digital currencies that the exchange doesn't actually own.

The Seoul Southern District Prosecutors' Office raided the office of Upbit in Gangnam District, southern Seoul, and confiscated computer hard drives and account books.

"The company will cooperate faithfully in prosecutors' investigation", said Upbit in a statement released Friday. The company promises that all client assets are absolutely safe, adding that all transactions and withdrawals are operating normally. "Your assets are kept securely in your account". The largest cryptocurrency on the market, Bitcoin, dropped to a three week high of $8,520 earlier in the session, while the cryptocurrency market's value fell to as low as $379.8 billion, losing almost $60 billion of its value in less than 24 hours. This return coincided with a considerable increase in average prices and total market capitalization values. Every one in the past year has been looking and countries like Japan USA and Korea to figoure out what the future will look like.

Many believe that although South Korea has a relatively small population, it is the world's third most significant for cryptocurrencies after the US and Japan. To investigate about this matter South Korea's Financial Supervisory Commission (FSC) took over.

The startup exchange notably refused to join other South Korean exchanges in support of self-regulation at the end of previous year.

Coinnest is still functioning, after its board announced that it has replaced the executive team of the company and will continue to operate as a local cryptocurrency trading platform.

Upbit, a popular South Korean cryptocurrency exchange is caught in troubled waters.

The reaction from the crypto community to the news followed the established script - panic.

South Korean prosecutors raided the offices of Upbit, one of the world's largest cryptocurrency exchanges. This website does not provide legal, investment, tax, etc advice.

  • Kyle Peterson