February 16, 2019

Kakao shares fall on crypto exchange Upbit raid

PUBLISHED : May 14, 2018 - 16:39

UPDATED : May 14, 2018 - 16:48

  • 본문폰트 작게
  • 본문폰트 크게
  • 페이스북
  • 트위터
  • sms

[THE INVESTOR] Shares of Kakao suffered losses on May 14, on news that its cryptocurrency exchange Upbit was raided over fraud allegations last week. 

Shares closed at 113,000 won (US$105.99), down 3.42 percent from the previous trading day. The mobile messenger giant is estimated to own over 20 percent stake in Dunamu, which operates Korea’s largest digital coin exchange Upbit.

Despite the stake ownership, Kakao has denied any direct ties with Upbit. But some key management members from Kakao, including former CEO Lee Sir-goo, have joined the firm in recent months and Kakao shares have been on a rollercoaster ride on the exchange’s business outlook. 

On May 11, the prosecution said it raided the offices of Dunamu in southern Seoul, accusing it of selling cryptocurrencies it doesn’t hold. 

The prosecution said it seized related hard disks and accounting books, The authorities are expected to question Dunamu chief Lee Sir-goo, who formerly headed Kakao. 

The raid arrives following the Korean government’s expanding investigation into cryptocurrency exchanges to curb speculation and illegal activities. 

Earlier in March, local cryptocurrency exchange Coinnest cofounder and CEO Kim Ik-hwan was charged with embezzlement and fraud. He had allegedly transferred “billions of won” in customers’ digital coins into personal accounts.

By Ahn Sung-mi (

  • 페이스북
  • 트위터
  • sms
Herald Corporation|CEO : Kwon Chung Won
Chief Privacy Officer & Juvenile Protection Manager : Yang Sung-jin
Company Registration No. 104-81-06004
Mail-Order Business Registration 2016 - Seoul Yongsan - 00590
Huam-ro 4-gil 10, Yongsan-gu, Seoul, Korea
T : +82-2-727-0114|Business info
Gov’t registration No. 아 04099