Korean (obviously south.. not north) prosecutors raided Upbit, the biggest Crypto exchange in Korea.
According to the report, UPbit is suspected of fraud for allegedly selling cryptocurrency to customers that it does not actually hold. Yet, this is not a new surprise for Korean exachanges. In March, prosecutors raided three exchanges for the same allegation, and the CEO of Coinnest was taken into custody.
Last January, the nation’s largest cryptocurrency exchanges such as Coinone and Bithumb were raided by police and tax agencies this week for alleged tax evasion.
Shady trades and volume has been raising eyebrows of many people ever since Cryptocurrency started to boom in Korea.
Then the question maybe be why suddenly Upbit is on the hot seat now?
Here comes one of the theories....
The police raid started on 10th yet Korean media made it as a "Breaking News" only on 11th Afternoon.
And the CEO of Etoday, the Media that started this newsflash, is also the CEO of Omnitel, The major shareholder of Bithumb.
Is this a part of the game of thrones in Korean exchange world?
let's see how it goes. yet it seems not much to worry about although the market is over-reacting to the news.
- Related Article
http://fortune.com/2018/05/11/bitcoin-price-stock-cryptocurrency/
https://www.coindesk.com/koreas-biggest-crypto-exchange-raided-over-suspected-fraud-report/
*Comapnies
UPbit : https://upbit.com/home
Bithumb : https://www.bithumb.com/
Omnitel : http://www.omnitel.co.kr/
*History of Korean exchange killing field
https://www.reuters.com/article/us-southkorea-bitcoin/south-koreas-major-cryptocurreny-exchanges-raided-by-police-tax-authorities-idUSKBN1F002B
http://english.chosun.com/site/data/html_dir/2018/03/15/2018031500890.html
https://www.zdnet.com/article/korean-cyrptocurrency-exchange-boss-arrested-for-fraud/