Last Friday May 11th, UPbit, which is South Korea’s largest cryptocurrency exchange, was raided by inspectors. News of the raid caused cryptocurrency values to drop across the board. On May 15th it was revealed that Upbit is in the clear and auditors found no wrongdoing.
Results of the audit should be released later this week.
On Friday the South Korean inspectors began an investigation into UPbit’s records after supposedly being told that UPbit was allegedly acting as if they held larger amounts of money in cryptocurrencies than what it had on record. This has been shown to be untrue and that the misunderstanding stems from a liquidity issue. Part of the issue came from the fact that UPbit lists 130 cryptocurrencies on the platform but only operated wallets of ~ 90 cryptocurrencies.
According to a South Korean cryptocurrency news outlet Crypto of Korea (@CryptoofKorea), the issue with the matter was corrected and auditors found no mishandling of records.
Bittrex and South Korea’s Kakao teamed up in late September 2017 to create Upbit. UpBit allows for trading in over 100 cryptocurrencies via its Kakao Talk-based mobile stock trading app, Kakao Stock. Just two months previous Kakao Corp launched Kakao Bank, which has become the country’s second Internet-only banking system and is said to have accrued ~800 thousand customers and nearly $500 million (US) worth of loans and deposits within days of its launch. within days of its launch.