The South Korean exchange UPbit was raided on suspicion of fraud
According to reports, South Korean prosecutors raided the largest cryptocurrency exchange in the country, UPbit.
According to CoinDesk Korea, investigators from the Prosecutors' Office of the southern district of Seoul, the capital of the country, registered the central exchange office in the Gangnam-gu district from May 10 to 11.
According to the report, UPbit is suspected of fraud for allegedly selling cryptocurrencies to customers it does not actually own. "We have secured hard drives and accounting books through confiscation. The analysis is expected to take days, "said the Office of the Prosecutor.
When asked for a comment from CoinDesk Korea, a UPbit representative said: "At this time, I can not answer anything about this seizure."
However, the exchange support website confirms the investigation in a note published today and declares that its services are still operational, and says:
"The prosecution is currently investigating UPbit, and we are working diligently. UPbit services, like all transactions and withdrawals, function normally. Your assets are kept securely in your account, so you can be sure you can use the exchange services. "
The news comes when the country's authorities have been investigating the exchanges of cryptocurrencies amid the regulatory adjustment.
In March, prosecutors raided the offices of three cryptocurrency exchanges on suspicion of diverting funds from clients' accounts. One of the exchanges was Coinnest, the fifth largest in Korea at that time. Kim Ikhwan, the company's founder and another executive were arrested in early April.