The Seoul Southern District Prosecutors’ Office, Korea’s Authority has indicted three Upbit executives for fraud. The prosecutor accuses them of making fraudulent transactions and creating fake orders amounting to about $226.2 billion. Accordingly, some reputable members of the company will have to defend themselves.
One of the Largest Crypto Exchange Gets in the Authority’s Net
Upbit is one of the most popular cryptocurrency exchanges in the world. This is a fact that is backed by Coinmarketcap’s ranking for exchanges with the highest trading volume today. Upbit may be the third in the world, but when it comes to Asian countries, it can be said to be the largest market for trading these digital assets.
A closer inspection of the details of the allegations reveals that the company had sold 11,500 bitcoins to its customers, but rigged the transactions which earned them around 150 billion won ($133.8 million). These transactions date as far back as October 2017 where another occurred on December 18 this year.
Upbit Says Claims are False and There Are No Fraudulent Trades
Upbit has, however, refuted these claims stating that all the virtual assets traded by the company were theirs. They also said that imaginary orders were not created and neither did they trade fraudulently. However, they admitted to the fact that fake orders were made for some months during the company’s inception stage and it was solely for marketing purposes.
The South Korean exchange has added that they are ready to comply with the prosecutors in the course of their investigation as a way of showing that the allegations against them are false. Upbit has also shown their concerns to their customers who may have grown anxious due to the recent development.
Regulators Seek to Bring Transparency in Crypto Markets
The Financial Services Commision (FSA) brought all this to light. The regulator says that their aim is to bring about fairness and transparency in the cryptocurrency market. If this is not the case, then they are concerned that a lot of people that trade virtual assets will lose their money to these fraudulent acts on exchanges.
This event is quite similar to that which occurred in late November with the Hong Kong-based company, Bitfiniex. The U.S. Justice Department at the time began probing the cryptocurrency exchange to determine if they had manipulated the price of Bitcoin in December 2017 using Tether. Here, the trading platform had also denied the allegations.