South Korea’s Biggest Cryptocurrency Exchange ‘UPbit’ comes out clean in audit

According to reports from a Korean accounting firm, the biggest South Korean crypto exchange UPbit is cleared of charges from the allegations that were made against it last May.

The exchange was blamed to have manipulated its balance sheet which resulted in a rise in its trading values. Soon after unknown sources claimed that the firm was indebted, Korean local investigators, Financial Services Commission [FSC], and the Korea Financial Intelligence Unit [KFIU] raided the headquarters and seized documents and hardware from UPbit.

“We have secured hard disks and accounting books through confiscation. Analysis is expected to take days,” the authorities had stated.

Meanwhile, a spokesperson from the exchange operator’s development team had also stated that the platform would remain functional and would continue to serve users until further notice was issued by the local police.

One of South Korea’s largest accounting firms, Yoojin, investigated UPbit’s accounts. On May 15th, the firm issued a statement which cleared UPBit of all the allegations and concluded that the company is storing 100% of its Bitcoin and cryptocurrency listed on its balance sheet.

However, many were sceptical about the authenticity of the report as no official statement was issued by Dunamoo and the KFIU [a division of Korean internet giant Kakao] backing the report. Speculators of the cryptocurrency world wondered if the exchange is safe for utilization.

On August 4th, Dunamoo issued a statement regarding the case which has conclusively cleared the controversy hovering around the company. This news sent a wave of relief over worried traders.

The report also emphasized that UPbit holds 100% of user funds and 27% more than the cryptocurrency holdings of its investor, more than enough to pay back every investor.

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,”

He also added that Upbit will be able to process withdrawals upon the requests of its customers.

Upbit has overtaken Bithumb in the recent months to become South Korea’s largest crypto exchange hub. Speculators and analysts of the cryptocurrency world predict that Gopax [cryptocurrency exchange], backed by Shinhan Bank [one of the country’s top-rated financial bank] will lead the South Korean cryptocurrency exchange market in the months to come.


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