Korea’s UPbit Crypto Exchange Sees 3 Executives Charged With Fraud For Bogus Bitcoin Transactions


Three Executives Of Upbit Charged With Fraud

One of the largest exchanges in South Korea, Upbit, has recently seen three of its senior executives be charged with fraud by prosecutors of the country. The Prosecutors’ Office of Seoul has seen three of the most important members of the company, including Song Chi-Hyung, the founder of the company, be charged with fraud.

They have been arrested because of allegedly fraudulent transactions that were made between September and December 2017. According to the police reports, they used fake corporate accounts to inflate the trading volume of the exchange by making fake orders of around $226.2 billion USD in cryptos.

The trio has also been accused of selling 11,550 BTC to customers in rigged transactions that benefited only the executives.

According to the reports, one executive that participated in the fraudulent activities is directly linked to Upbit while the other two are from Dunamu, the company that owns Upbit.

Upbit Denies The Allegations

The official channels of the company deny the accusations completely. An official report stated that the company used the accounts to “provide liquidity” to the market and to stabilize trading. It has also affirmed that the account did not have a withdrawal function and that it was not benefited in any way with the transactions.

According to Upbit, the transactions comprised only 3% of the total volume at the time, so they were not so significant as the prosecutors affirm that they are. Also, the executives made no profits from what happened, too.

Not the First time Upbit Is Accused

Upbit’s history of being accused of illegal wrongdoings is not actually new at all. Back in March, the company was accused of selling cryptocurrencies to customers without actually holding them. At the time, the police seized hard drives and accounting books from the firm.

The case against Upbit is only a part of a larger effort of the South Korea government to take more action against any crypto exchanges operating outside of the law. Upbit is the sixth Korean exchange that was investigated this year by the country.

The Financial Services Commission (FSC) representative believes that the market needs to be fair and transparent in order for the customers not to be fooled and lose money because of the bad behavior of the exchanges.

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