UPBit exchange was acquitted: no violations were found

Korean news source, Money Today, announced that South Korean cryptocurrency exchange UPBit was found completely innocent of previous charges.

It is known that during the external and internal audit, no misappropriation of user funds was identified. An internal account audit showed that 100% of the coins are real, and all ledgers are synchronized with user wallets.  

The management of the exchange was accused of possible theft of client funds. The exchange did not have any unaccounted accounts - all funds of the exchange’s clients are stored in their own wallets. The reason for the accusations against UPBit is a complete misunderstanding of the process of storing cryptocurrency assets on the part of government regulators. 

At the same time, there is a version that what happened may be the result of a corporate war with the second largest South Korean exchange Bithumb. This assumption was made by representatives of the startup Karma.red.

Recall that the police of the southern district of Seoul on May 10 and 11 conducted searches in the company’s office and seized hard drives with data from the service’s clients. The accusation was based on the assumption that exchange employees transferred client funds to accounts belonging to the company's management.

In addition, UPBit management was accused of falsifying exchange reports. It was assumed that millions of dollars could have been stolen from the exchange.

The Seoul Prosecutor's Office began an investigation into local cryptocurrency exchanges in March of this year. In April, four executives of Korean cryptocurrency exchanges, including Coinnest, were detained on suspicion of embezzlement of client funds. Last week it became known that the Financial Services Commission of South Korea (FSC) will join the Financial Services Commission (FSS) investigation into money laundering. Regulators plan to continue checking the country's cryptocurrency platforms and it is expected that the main target of regulatory checks will be the largest South Korean exchange, Bithumb.

Note that the cryptocurrency market is very sensitive to panic sentiment and such events are always reflected in the charts currency prices.

After the situation was clarified, experts in the field of cryptocurrencies and blockchain, against the background of Consensus 2018, predict growth of the cryptocurrency market.