Bitcoin prices dropped May 11th after regulators investigated South Korea’s largest cryptocurrency exchange, Upbit, panicking users.
Upbit ‘Deceiving Customers’: Reports
According to local news media outlet Chosun, authorities suspect Upbit of faking data about its balance sheet and “deceiving customers.”
Users holding funds on the exchange then withdraw en masse, as shown by data uploaded to social media, causing volatility across Bitcoin markets and prices to sink below $9000.
UPbit got BOGGED. pic.twitter.com/16cUBsoOIP
— Korean Cryptocurrency & Blockchain News (@CryptoOfKorea) May 11, 2018
As Chosun reports, a group of ten investigators from South Korea’s Financial Supervisory Service arrived at Upbit’s head office in Seoul Friday.
The move follows revelations last month involving fellow cryptocurrency exchange CoinNest, whose owner Kim Ik-hwan the FSS claims embezzled “billions” of won alongside executives from another operator.
The stakes are high for Upbit, being owned by a subsidiary of Korean messenger giant Kakao.
In March, Bitcoinist reported the exchange launched Korea’s first cryptocurrency index, UBCI, to aid market insight for investors.
Despite some commentators considering the user flight in light of the inspections as an “overreaction,” the …
Read more –> click here all content is copyright Bitcoinist.
Need Bitcoin marketing and PR? Bitcoin PR Buzz has been proudly serving the PR and marketing needs of Bitcoin and digital currency tech start-ups for over 2 years. Get your own professional Bitcoin or cryptocurrency press release CLICK HERE..
Powered by ABITCO.IN