íàçâàíèå

3 Korean Cryptocurrency Exchanges Raided in Embezzlement Inquest

3 Korean Cryptocurrency Exchanges Raided in Embezzlement Inquest

Three South Korean cryptocurrency exchanges have reportedly been raided by prosecutors suspecting embezzlement of user funds.

Korean publication Chosun is reporting a series of raids this week by the Seoul Southern District Prosecutor’s Office on three separate cryptocurrency exchanges as a part of an investigation into the alleged siphoning of customer funds. The exchanges’ executives and staff are suspected of using fiat deposits from customer accounts to buy cryptocurrencies at other exchanges.

During the raids, prosecutors also confiscated money transfer receipts, mobile phones, accounting statements and computer hard drives belonging to the exchanges. Few details are known currently. The names of the exchanges under suspicion have not been revealead.

A prosecutor from Seoul claimed the office was alerted to the potential misuse of customer funds during an external audit into cryptocurrency exchanges by Korea’s regulator and watchdog.

The prosecutor reportedly said:

In nearby Japan, authorities issued suspension orders to a cryptocurrency exchange last week after a senior staff member was discovered to have ‘diverted’ customers’ bitcoins for personal use.

The raids and seizures come within months of Korean authorities turning up their scrutiny of the cryptocurrency industry and even traditional banks supporting them, since the turn of the year. At the time. At the time, the country’s justice minister publicly spoke of considering a ban on cryptocurrency trading and quickly garnered a major backlash from the public and other ministries within the government.

More pointedly, officials from Korea’s Financial Supervisory Service were found to engage in insider trading prior to the justice minister’s premature statements. An insider probe followed, with senior officials stressing that employees found guilty of insider trading will be investigated and will see the consequences according to law.

By the end of January, Korea’s finance minister stressed the government had no intention of enforcing a ban on crypto exchanges or trading. Instead, authorities marked the end of anonymous trading to curb tax evasion and capital outflows as Korea’s Customs Service determined that some $600 million in cryptocurrencies were exchanged illegally in the country.

More recently, financial regulators have adopted a decidedly embracive stance toward the industry while stressing the government will ‘support’ cryptocurrency transactions. In recent days, it has been reported that Korean authorities are in discussions to reverse a sweeping ban on initial coin offerings (ICOs) in the country.

15.03.2018 / 09:55 363
South Korea Raids 3 Crypto Exchanges in Embezzlement Probe South Korea Raids 3 Crypto Exchanges in
South Korean prosecutors raided three cryptocurrency exchanges this week over suspicions that staff embezzled funds from customers' accounts,
Survey Finds South Korean Youth the Most Active Crypto-Investors Survey Finds South Korean Youth the
A survey released this week reveals that many South Koreans in their 20s are actively investing in digital assets. The region has become a hotbed for
China is Blocking Cryptocurrency Exchanges on Social Media: Local Report China is Blocking Cryptocurrency
Regulators in China have begun blocking social media accounts belonging to cryptocurrency exchanges that continue to offer services to customers
South Korean Travel Site with Over 50,000 Hotels to Accept 12 Cryptocurrencies South Korean Travel Site with Over
A South Korean travel website with over 50,000 hotels and other types of accommodation facilities will begin accepting 12 cryptocurrencies, thanks to
Korea’s Mandatory Crypto Real-Name System Neglected – 19% Conversion Rate Korea’s Mandatory Crypto Real-Name
South Korea’s real-name system for cryptocurrency trading has been enforced for over a month, but most accounts have not been converted to the new
Ripple Price Roars Past $1.05 as Korean FOMO Kicks into High Gear Ripple Price Roars Past $1.05 as Korean
The Ripple price roared past $1.05 on Monday amid surging volume in South Korean markets. Ripple Price Roars Past $1.05 The move was somewhat
Comments (0)
Add a comment
Comment on