Upbit Is Under Investigation for Fraud

UpBit is a very popular exchange site. According to statistics, it is the world’s 5th exchange in terms of daily trading volume (1). Every day, nearly 2 billion USD is traded on UpBit. It is also the biggest exchange in South Korea. In short, it is one of the “big league” players.

Well, maybe not anymore. UpBit is currently under investigation for fraud charges.

The famous exchange posted this message on its website today: “We are currently under investigation by the prosecution, and we are working diligently. Upbit services such as all transactions and withdrawals are operating normally.” While the message does not provide any details, the term “prosecution” does not sound too good. Third-party sources shared more details about this post. According to them (2), here is what is happening right now:

  • Korean Financial Intelligence Unit (KIU), Financial Services Commission, and Seoul Police raided the headquarters of UpBit at 10.00 AM this morning.
  • They have orders to seize the assets of UpBit and take control of the exchange.
  • This raid is probably connected to previous raids happened in South Korea last month (3). Those raids targeted other exchanges in the country. The police arrested four high-level executives during the raid.
  • UpBit and other exchanges are accused of fraud. To be more specific, the accusation is that high-level executives of these exchanges are transferring funds from customer accounts to their personal accounts.
  • In addition, these exchanges are accused of pretending to hold virtual currencies without holding any. Their computer records show “fake” virtual currencies which do not exist.
  • As of now, nobody got arrested from UpBit. However, the prosecution seized the computer hard disks and financial records.

If You Are Using UpBit…

As a crypto-gambler, you are probably using the services of an exchange and since it is the 5th one in the world, there is a big chance your funds are at UpBit too. This may be a good time to cash out. As of now, UpBit continues to offer its services but we are not sure how long this will last. Other people are already doing it. UpBit was actually the 2nd biggest crypto exchange in the world only two days ago. Now, it is the fifth. People are withdrawing their funds and there is a big dump going on at the moment. There is no way to tell what will happen to your crypto funds since the company hard disks and financial records are seized. In short, this may be a good time to bail out.

  • (1)https://coinmarketcap.com/exchanges/volume/24-hour/all/
  • (2)https://news.bitcoin.com/south-koreas-largest-crypto-exchange-upbit-investigation-fraud/


  • (3)https://news.bitcoin.com/ceo-of-korean-exchange-coinnest-among-four-arrested-for-fraud/

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