UPbit Did Not Manipulate Figures As Suspected
Upbit, the 13th largest exchange by trading volume, receives a clean audit report, which effectively puts a stop to any accusations about its legitimacy and liquidity. The South Korean exchange already successfully conducted an internal audit in May, but the investors’ skepticism prompted the need for the final clearance report.
Upbit came under intense scrutiny after a police raid. FSC sent 10 officers to the company’s offices in Seoul in order to seize control of the exchange and its holdings. Because of this bombshell announcement, a huge number of Upbit’s customers withdrew their funds from the exchange overnight, largely contributing to a staggering $50 bln market loss.
Days later, UPbit commissioned one of the foremost accounting firms in Korea, Yoolin to conduct an independent audit of its books. Yoolin formally cleared the exchange, stating the exchange was solvent and that its balance sheet figure tallied with the actual funds that users had on the platform.
Relief For UPbit
On Aug. 4, Dunamoo, a Kakao subsidiary that operates the Upbit exchange, released the long-awaited final clearance report. That report once and for all disproves any lurid insolvency allegations that have been floating around for the past three months.
The report based on the results from Yoolin’s audit of the exchange and stated that UPbit has 27 percent more than the cryptocurrency holdings of its investors. In his statement, Lee Seok-woo, the president of Dunamoo said:
“UPbit currently has the exact amount of money held by the platform’s investors along with additional funds, more than enough to compensate every investor. Hence, UPbit is able to process withdrawals for customers upon the request of its customers and the exchange will continue to release audit reports on a regular basis to prove its solvency.”