Law enforcement authorities in South Korea are checking three cryptoexchanges, suspecting that their employees may be involved in embezzlement of clients' funds. This is reported by CoinDesk.
Employees of the exchanges, including management, are suspected of using funds from their clients' accounts to purchase crypto-currency on other exchanges.
In the search for evidence, the Seoul County Prosecutor's Office confiscated hard drives, mobile phones and documents.
The firms turned up on our radar in January during our investigation of suspicious money transfers between Bitcoin exchanges that were detected during an audit by the Financial Services Commission and the Korea Financial Intelligence Unit.
S. Korean Prosecutor
Recently in South Korea, the requirements for the crypto exchanges were tightened, as part of the government's policy to combat money laundering and other questionable practices.