South Korean crypto exchange UPbit cleared of any wrongdoing after raid

Almost three months after being raided by local authorities, South Korea’s biggest crypto exchange, UPbit, has been cleared by an audit report that confirms the firm had 100% of its balance sheet proven.

South Korea’s leading financial watchdog, the Financial Services Commission (FSC) and the Korea Financial Intelligence Unit (KFIU) seized UPbit’s hard drives and account books to audit them.

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“UPbit currently has the exact amount of money held by the platform’s investors along with additional funds, more than enough to compensate every investor,” says Lee Weok-woo, president of Dunamoo.

“Hence, UPbit is able to process withdrawals for customers upon the request of its customers, and the exchange will continue to release audit reports on a regular basis to prove its solvency,” Lee adds.

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The raid on UPbit was the result of concerns that the crypto exchange was doctoring its balance sheet and inflating the volumes of trades over its platform.

To dissipate doubts, UPbit hired Yoojin, one of the country’s largest accounting firms, to carry out an audit of its accounts. The firm found that the crypto exchange did have the required funds, but doubts remained as no official statement was released by the South Korean government clearing the trading platform of any wrongdoing.

UPbit’s number one position

UPbit has become South Korea’s largest crypto exchange after Bithumb began encountering problems in processing deposits and withdrawals for over a month.

However, UPbit may lose the number one position to Gopax, a Shinhan Bank-backed cryptocurrency exchange.