South Korea’s Crypto Exchange UPbit Denies Fraud Claims About Unreal Balance Sheets

According to a local news source, South Korea ‘s largest crypto exchange, UPbit, has reported that they have conducted an internal audit and there was not any evidence of fraud. A local news source, Naver quotes the CEO of the currency saying that UPbit’s balance sheets are compatible with their wallets “100%”.

UPbit was investigated by financial regulators on May 11th because of the alleges on the company’s unreal balance sheets. Now, it is expected the company to publish its audit data to prove the allegations are not true and its coin asset is real .

Some commentators on social media have reported that there has been a “misunderstanding” between government auditors because of suspicions created by multiple wallets.

Sudden Panic in the Cryptocurrency Market

The visit from the government has created a sudden panic in the market. And this panic came at the same time that Mt. Gox trustees have sold more of its client liquidation funds. These incidences resulted in a decline in the market for few days.

Although it is not formally resolved, responders comment that UPbit’s reports on supervision seem to be a self-destructive attempt if it is done without any concrete information.

A Twitter -based Korean cryptocurrency news commentator said:

“We will see how the story unfolds, but I find it highly unlikely that UPbit would spin a narrative of innocence if they were under investigation where proof was easily seen through blockchain transactions.

UPbit, owned by South Korea’s communications giant Kakao, is currently the world’s fifth largest crypto exchange in terms of 24-hour trading volume and is trading at around $910 million per day to press time.

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