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Experts in the cryptocurrency industry in South Korea said it will be difficult for the government and local financial institutions. Authorities to lay charges against UPbit, the largest cryptocurrency purse of South Korea, as no investor has been affected.
Funds Real, no Relevant Investor
Last week, CCN reported that UPbit was raided and investigated by the local police, the Korea Financial Intelligence Unit (KIU) and the Financial Services Commission (FSC) due to suspected fraud. Local financial authorities have accused UPbit of inflating its balance sheet and pretending to have more funds in various cryptocurrencies than their actual amount.
On May 15, various sources confirmed that an audit conducted by a large accounting firm in South Korea known as Yoojin revealed that funds on the UPbit balance sheet corresponded exactly to the real assets of the company and proved that the company is solvent.
“Since early 2018, UPbit has created snapshots of its multi-signature portfolios and funds held there for audit purposes.” Yoojin accounting firm , a leading accounting firm based in Seoul, has confirmed that all funds on the UPbit platform correspond to the UPbit cryptocurrency funds stored in its multi-signature portfolios, “ MoneyToday reported.
It is said that the problem has been caused the UPbit has more than 130 cryptocurrencies listed on its platform, but only 90 cryptocurrencies have native portfolios that allow users to withdraw and deposit directly to and from the UPbit. are needed to convert to major cryptocurrencies like Bitcoin and Ethereum.
Insiders claimed that the police investigation had not revealed any irregularities and that, following the official audit report issued by Yoojin, the cryptocurrency market South Korea has already begun to recover.
Earlier this week, May 20, in an interview with Korea Herald, an insider said the authorities will not be able to bring any charges against UPbit because no investor has been touched in any way.
“Since no investor appears to have been affected by the alleged commercial practices of Upbit, it would not be easy for the authorities to lay charges,” says the source who asked to remain anonymous because of the sensitivity of the question.
The expert added that although the investigation eventually revealed no irregularities, it had a negative impact on the local cryptocurrency market, leading investors to lose confidence in the market.
“But a series of polls on prosecutions in trade has actually harmed the overall credibility of the industry,” the insider added.
Difficult to regain investor confidence
Oh Jeong-geun, a professor at Konkuk University, one of South Korea’s most prestigious colleges, said that the investigation would lead investors to permanently leave the cryptocurrency market and out. the authorities will have to lead an initiative to convince investors that it is safe to invest in the market. Professor Oh said:
“Parallel to the diversification efforts, the priority should be to ensure the smooth functioning of their trading systems to ensure their growth potential.The unreliability would cause investors to leave the market for always. “
Pictures of Shutterstock
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