THELOGICALINDIAN - Since the South Korean case started investigating Upbit the countrys better cryptocurrency barter added contest accept abundant While bounded media still altercate allegations and accession questions about Upbits business convenance some bodies accept that Upbit is already in the bright The analysis continues
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The Allegations
Local media appear on Friday that South Korea’s better cryptocurrency exchange, Upbit, is under investigation for declared fraud. More advice has alike since, casting agnosticism on whether the allegations can be advised fraud. No accuse accept been filed adjoin Upbit at the time of this writing. However, the prosecutors accept confiscated the exchange’s computers and annal as allotment of the investigation.
On Monday, News1 Korea described:
Liquidity Issue
The aboriginal allegation, the best heavily scrutinized, apropos the clamminess of some of the bill listed on Upbit.
The barter currently lists 137 cryptocurrencies but not all of them accept wallets. South Korean prosecutors are accusing the barter of “book-trading” area Upbit facilitates the trading of cryptocurrencies after absolutely accepting the bill in its possession. Joongang Ilbo elaborated:
News1 additionally acicular out that there is a angle amid board that if users appeal a alteration or abandonment of their bill all at once, again Upbit will not be able to acknowledgment their money immediately, which would cede the aboriginal affairs fraudulent.
However, some altercate that “most calm trading sites are adopting this method” except those that handle a baby cardinal of cryptocurrencies such as Bithumb, the account aperture conveyed, abacus that if this adjustment is begin to be an “apparent fraud…[then] the industry will not be abundant affected.”
Upbit Calls It a Misunderstanding
Upbit says that this analysis is “something that comes from misunderstanding,” Joongang Ilbo reported.
The barter has again absolved the aloft accusation, emphasizing that it will defended the bare cryptocurrencies as anon as it has brokered a transaction for the bill after a wallet, the account aperture detailed. In addition, Upbit insists that it has “never bought or awash cryptocurrencies that it did not own back it opened aftermost October.”
Furthermore, accustomed Upbit’s absolute affiliation with the US barter Bitrex, crypto experts accept that “the abridgement of compassionate of the Upbit trading arrangement that links the arrangement with the across barter has led to the suspicion of book trading,” the advertisement emphasized, adding:
A adumbrative of addition crypto barter explained that except for the won market, Upbit affairs are fabricated through Bittrex. “It is a accepted book deal, and the prosecutors assume to accept blurred why they are affairs cryptocurrencies that they do not have.”
Previous Internal Audit
Another agency at comedy is an commodity appear by Money Today on Tuesday, referencing an centralized analysis which reportedly happened beforehand this year. The account aperture quoted Lee Seok-woo, admiral of Dunamu Inc. which operates Upbit, adage that “In aboriginal March, back Upbit was doubtable of alone [conducting] book affairs after [holding the] coins…I accept been notified that the bulk of bill [in the books] is 100% identical to the cardinal of coins” in the wallets.
Referencing the aloft article, Twitter user Crypto of Korea wrote, “Upbit claimed that they had the centralized annual audit…The analysis shows that 100% of the bill are real, the ledgers all synced to their own wallets.”
Some bodies after took Upbit’s affirmation as the barter actuality bright of wrong-doing in this accepted investigation, while others abide added objective. Twitter user Nash wrote, “Not assured yet. It’s aloof “Upbit’s claim.” Meanwhile, Korean media still accession questions about Upbit’s operations and seek added answers at the time of this writing.
Insider Trading and Money Laundering Concerns
The prosecutors are additionally reportedly attractive into allegations of cabal trading and money bed-making surrounding Upbit, News1 Korea wrote, acquainted that “some investors accept aloft able suspicion that there is cabal trading” at the exchange. “It is doubtable that a being who receives advice from an Upbit agent about an accessible advertisement [on Upbit] would accept bought the cryptocurrency from [an] across trading armpit and awash on Upbit.”
Furthermore, the board declared that “illegal business funds are added calmly transferred from the calm [exchange] to the US due to the bond with Bittrex,” the advertisement described.
As for any artifice charges, a advocate was quoted by the account aperture commenting:
Joongang Ilbo added asserted that according to the position of the country’s banking regulators, “cryptocurrency is not accountable to the Capital Market Law because it is not a budgetary product.” In the absurd accident that the prosecutors can administer the Capital Market Law to this case, commissions through book affairs would be advised bent proceeds, the account aperture explained.
Do you anticipate Upbit has done annihilation wrong? Let us apperceive in the comments area below.
Images address of Shutterstock, Twitter, and Upbit.
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