Upbit faces another fraud case

Posted 21 December, 2018

The founder and top management of the leading South Korean trading platform Upbit reportedly face official fraud charges.

As the media reported, the prosecutor office in one of Seoul’s districts charged three top managers and founder of the exchange with participation in the fraud schemes carried out from September till December 2017. The authorities suppose that the company deliberately overvalued the reports about trading striving to lure new clients. In particular, overall trading amounted to KRW 254 trillion ($226.2 billion) over the period under review. Moreover, these employees are also suspected in crypto sales for KRW 150 million ($133.8 million; 11,550 bitcoins) via fake deals.

At the same time, the platform representative rejected these charges, saying that all the figures that were released over the stated period represented the corporate liquidity aimed at the market stabilization while rolling out the service.

Notably, as Upbit added, withdrawal for corporate accounts was inactive. Still, the platform confirmed that some transactions were made to attract new users, though it did not benefit from such deals. Moreover, these deals had no impact on the market, as the company spokesperson noted.

For reference, Upbit already faced fraud charges back in March. That time, the law enforcement bodies withdrew HDDs and account books. 

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