March 25, 2019

Crypto exchange Upbit raided on fraud allegations

PUBLISHED : May 11, 2018 - 18:00

UPDATED : May 11, 2018 - 18:03

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[THE INVESTOR] The prosecution said on May 11 that it has raided the offices of Upbit, one of the largest cryptocurrency exchanges in Korea, over the past two days.

The crypto exchange is suspected of having deployed fraudulent schemes that trade and store digital coins on its platform without having actual cryptocurrencies.

S. Korean crypto exchange CEO nabbed for embezzlement

“We found some circumstantial evidence that shows Upbit sold a larger amount of crypto coins than it actually owned in the early business phase,” an official from the prosecutors’ office said.

Prosecutors, who seized related documents and computer files, are expected to question Lee Sir-goo, former Kakao CEO who has been heading the exchange since December last year.

The raid comes amid the Korean government’s efforts to reduce risks of illegal activities surround the emerging coin technology.

During an extensive prosecutorial probe earlier this year, Kim Ik-hwan, CEO of crypto exchange Coinnest, was charged with fraud and embezzlement.

By Kim Young-won (

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