Korea’s Biggest Crypto Exchange Raided Over Suspected Fraud

Prosecutors in South Korea have reportedly 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 country’s capital, searched the head office of the exchange in the Gangnam-gu district on May 10-11.

UPbit is suspected of fraud for allegedly selling cryptocurrency to customers that it does not actually hold, according to the report.

Korea’s Biggest Crypto Exchange Raided Over Suspected Fraud
Korea’s Biggest Crypto Exchange Raided Over Suspected Fraud

The Prosecutors’ Office stated:

“We have secured hard disks and accounting books through confiscation. Analysis is expected to take days. “

When asked for comment by CoinDesk Korea, an UPbit representative said, “At this time, I can not answer anything about this seizure.”

The news comes as authorities in the country have been investigating cryptocurrency exchanges amid regulatory tightening in the country.

In March, prosecutors reportedly raided the offices of three unnamed cryptocurrency exchanges on suspicion of siphoning off funds from customers’ accounts.

South Korean flag and BTC image via Shutterstock

Edited (08:55 UTC): This article has been edited to clarify the the reason for the raids

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