UPbit Suspected of Fraud by Korean Law Enforcements

Prosecutors say that the company transferred money from user accounts to separate accounts
11 May 2018   731

Korean law enforcement officers conduct searches and seizures in the office of the country's largest exchange Upbit, reports Crypto of Korea.

A team from the Seoul City Prosecutor's Office of the Southern District, engaged in financial investigations, visited Upbit headquarters on May 10 and 11, withdrawing hard drives and accounts.

Prosecutors say that the company transferred money from user accounts to separate accounts. It is assumed that these accounts belong to the management of Upbit.

The Prosecutor's Office of Seoul is conducting an investigation into the local crypto exchanges since the beginning of this year. In April, four executives of Korean exchanges were detained, including Coinnest.

Korean Exchange to Create AML Hotline

Operators will be checking suspecious transactions in real time by the user reports
28 January 2019   1398

The four leading cryptocurrency exchanges of South Korea are joining forces in the fight against money laundering, reports the local news agency The Korea Herald.

Bithumb, Upbit, Korbit and Coinone exchanges organized a hotline through which users can report suspicious transactions that may be related to criminal activities, such as financial pyramids. A representative of one of the participating exchanges, on condition of anonymity, said that operators would be able to verify suspicious transactions in real time and immediately block the accounts associated with them if the information is confirmed.

Earlier this month, it became known that 21 South Korean stock exchange cryptocurrencies were audited by the security of local authorities. Most firms were unable to prevent criminal activity, but the measures used by Bithumb, Coinone and Korbit were satisfied with the regulators.

The cooperative step against money laundering via cryptocurrencies is expected to boost the soundness of the industry and to better protect consumers.
 

Quote, Yonhap

On January 20, it was reported that the leaders of the Korean Komid Crypto Exchange were sentenced to prison terms for falsifying trading volumes.