If you keep an eye on our updates regularly, you may know that South Korea’s biggest cryptocurrency exchange Upbit was recently raided by country’s authorities on accusations of fraud. Now a new turn has come in that story as an independent audit firm of country has declared that it found no discrepancies in operations of exchange and no figures had been inflated in company’s balance sheet as alleged in the recent days. Since cryptocurrency market has taken a toll after raids on Upbit, this news may come as a sign of relief and the market may show signs of recovery in upcoming trading sessions.
The news came from Yoojin Accounting Firm, one of the biggest accounting firms in South Korea. The firm said in its report that funds on Upbit exchange platform match its cryptocurrency holdings completely and there’re no signs of any misrepresentation in the balance sheets of company.
It’s worth noting that this was an independent investigation and the police investigation initiated by country’s Financial Supervisory Service and Financial Intelligence Unit is still underway. The details of that investigation will be revealed later this week, but now when Yoojin’s report has led to nothing there’s a chance that police investigation may also not lead to anything significant.
Local police had accused Upbit of inflating its balance sheet without holding cryptocurrencies matching with the figures of its order books. Insider sources claim that this perception stemmed from the fact that Upbit provides its users wallets for only 90 cryptocurrencies while the number of cryptocurrencies being traded on its platform is 130. For remaining 40 coins users are required to convert their holdings in one of the other 90 cryptocurrencies for which wallets are available on Upbit platform before they can withdraw their holdings. Same applies to deposits as well – those 40 cryptocurrencies for which wallets are not available on Upbit can also not be deposited directly to someone’s Upbit account. One must deposit funds in any of the remaining 90 coins first and then exchange those funds for any of those 30-40 coins for which no wallets are available on company’s platform. It was this tricky and lengthy operation that wasn’t liked by country’s authorities.
For users, however, Upbit remains the same – at least for now. No operations of exchange have been halted and it continues to function as usually. And now when Yoojin report has stated that nothing wrong was done by the company, there’s an increased possibility that Upbit is going to emerge unscathed from police investigations as well. Once it has happened the global cryptocurrency market, which went in a downturn post raids on this exchange, may also start recovering from the losses.