- The largest cryptocurrency exchange in South Korea is being investigated for transaction manipulation
- Upbit allegedly faked up to 254 trillion won worth of transactions
- They have denied the allegations
Upbit, South Korea’s largest cryptocurrency exchange is being accused of faking up to 254 trillion won worth of transactions in an attempt to bolster profits.
The pressure is on
Indictments have already been made in relation to the case, with the Seoul Southern District Prosecutor’s Office revealing that three people connected with the firm have been indicted.
The matter was first reported to the Prosecutor’s office by the Financial Services Commission (FSC) who suspected the exchange of using a bot to inflate their transaction numbers.
The bot targeted underperforming currencies and inflated their numbers, manipulating daily transaction volumes.
This was allegedly done twice a year and most recently on the 18th of December 2018 and fabricated over 254 trillion fake wan worth of transactions.
This is not the only similar story as just this week, Bithumb was accused of manipulating their transactions volumes as well, though they also have denied the allegations against them.
Manipulation in the cryptocurrency industry is a very hot button issue with everything from exchanges to stablecoins being accused of aiding in manipulation.
These types of incidents do not lend the industry any credibility and lead to those who invest being duped, a sentiment that has been echoed by officials.
“I’m worried about investors who may lose money in this market because of exchanges like Upbit. We need a way to make the market and the industry fair and transparent,” an FSC official was quoted as saying.
Upbit denies wrongdoing
The exchange on their part has denied the claims but has agreed to corporate with the ongoing investigation.
“Upbit, as a corporate body, has never liquidated any assets acquired via fraud or used fraudulent assets to make further transactions,” the crypto exchange said in a press release.
“We will fully cooperate with the prosecution’s investigation to show the allegations are totally false.”
Upbit is the third largest cryptocurrency exchange in the world by trading volume and should they be exposed for manipulation, will significantly lose in the rankings.
As details of this case come out, more measures will hopefully be put in place to detect and prevent transaction manipulation for the good of the industry.