The largest cryptocurrency exchange in South Korea Upbit is suspected of fraud, authorities have already launched an investigation. Yesterday in the office of the exchange was searched with the seizure of computers and accounting. According to Money Today, the case involved more than a dozen investigators.

Crypto writes of Korea, Upbit allegedly engaged in stealing money from the wallets of users:

“The company suspected of illegal transfer of funds of polzovateley with their accounts on the exchange on account of the representatives or lead Upbit. […] The Prosecutor’s office of South Korea has put forward allegations of fraud after conducting a search and confiscation”.

In its official statement on the ongoing investigation Upbit has denied the charges and assured customers that their funds are securely protected. Also representatives of the exchange said that the confiscation of equipment does not affect its basic functionality:

“Currently Upbit is under investigation and we are working diligently with prosecutors. Upbit services such as transactions and withdrawals are provided in the usual manner”.

More precisely, the situation described by the online edition of KBS:

“According to prosecutors, Upbit worked in the system without having the crypto-currency reserves, thereby deceiving the users.”

The financial services Commission (FSC) and the financial supervision Service (FSS) of South Korea began a series of investigations against the national cryptocurrency exchanges in March. The first platform is closed as a result of these tests was Coinnest, whose Chairman was arrested for fraud and embezzlement of funds.

In the case that an inquiry Upbit will lead to a trial, probably the South Korean authorities once again changed the regulatory line on tighter. We will remind that recently the head of the FSS Yun Suk-Hyun confirmed that the authorities will seek to weaken the regulation of internal trade cryptocurrencies.