Executives at Korean Crypto Exchange UPbit Indicted for Fraud

The executives of UPbit, one of South Korea’s largest cryptocurrency exchanges, have been formally charged by the country’s prosecutors.

In accordance to a report from CoinDesk Korea on Friday, the Prosecutors’ Office environment of the southern district of Seoul has indicted three senior team users, which includes founder Music Chi-Hyung, on fees of fraud.

The executives are alleged to have produced fraudulent transactions in between September to December of final yr, making use of a bogus corporate account to make bogus orders value 254 trillion received (or $226.2 billion) to inflate investing quantity figures and draw in a lot more customers to the exchange.

They are also accused of selling 11,550 bitcoins to customers to enjoy 150 billion received (or $133.8 million) by way of rigged transactions.

UPbit, nonetheless, denied the allegations in a detect issued Thursday, stating that, “The Corporation furnished liquidity to the Company’s corporate account in purchase to stabilize the investing current market at the commencing of the services opening. This time period is from September 24, 2017 to December 11, 2017.” It added that the corporate account does not have a withdrawal operate.

The exchange went on to say that has “not benefited or traded” in this system, though it conceded it had produced some transactions early for internet marketing uses over about two months. They did not have an effect on the current market, UPbit claimed, and comprised about 3 % of the whole quantity at the time.

Back again in March, the prosecutors had also raided the UPbit’s head office in the Gangnam-gu district, by seizing its hard disks and accounting guides. At the time, the exchange was suspected of fraud for allegedly selling cryptocurrency to customers that it does not in fact hold.

The South Korean government has been more and more taking action from crypto exchanges because the get started of the yr. In January, the country’s law enforcement and tax office officials raided Bithumb and Coinone exchanges amid an investigation into alleged tax evasion. In March, prosecutors raided three unnamed cryptocurrency exchanges over suspicions that team embezzled resources from customers’ accounts.

Seoul central courtroom impression via Shutterstock