Upbit executives are being investigated for alleged diversion of cryptocurrencies.
Upbit is a native exchange of Korea that offers its services worldwide. Through this platform you can make purchases of cryptocurrencies by credit card or bank transfers.
Recently, an investigation was initiated into this exchange house in South Korea, since they suspect that their managers began to carry out operations without having direct custody of the funds of their clients. After this investigation process, the regulatory authorities of this country believe that the managers of Upbit can be linked to deviations of funds from the platform to their personal accounts.
Prosecutors in Seoul, capital of South Korea, continue with various investigations to find the final clue to help them solve the case. For this investigation a team of financial investigations was assigned in order to facilitate the process, in total there are 10 experts working.
The researchers are at the Upbit headquarters, located in Gangnam-gu, Seoul, from May 10. During the intervention, they removed several electronic devices, as well as information from the transaction records, and thus managed to verify the incongruities that currently make the company news worldwide.
"We have secured hard drives and accounting books," said the South District District Attorney's Office in Seoul. According to this entity, it is suspected that the cryptocurrency launches were made by high-ranking personnel of Upbit, in fact, the clues point specifically to the CEO, Lee Seok-woo.
The main suspect.
According to the investigations that have been made since last week, Lee Seok-woo is one of the main suspects of the diversion of capital. It is presumed that the Upbit CEO created an alternative bank account to the company so that the platform's clients could make their deposits in it.
Seok-woo has been in this position for a short time, in fact, he began to be CEO in the month of December of last year, 2017. According to his words: "I assumed the role of CEO after seeing the potential for global growth and the vision of the cryptocurrency market and the blockchain industry ".
According to local media, the authorities are suspicious of the Upbit executives as they are believed to be carrying out operations without having funds in cryptocurrencies. This hypothesis is due to the fact that the platform is working with few portfolios, especially if we compare it with the large number of interchangeable cryptoactives from its own offer.
For this reason, customers can not perform the corresponding verification of resources, especially the cryptocurrencies exchanged by Upbit. This exchange has an exchange amount of 237 bitcoins, which is equivalent to more than 2 million dollars.
Upbit continues to operate.
After making known the investigations carried out on the platform, the company confirmed the information and issued an official statement in which it is explained that the services of this Korean exchange continue to operate with complete normality. The above is due to the fact that the research processes are being carried out exclusively by Upbit's managers.
