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Korean crypto exchange UPbit is suspected of fraud

Korean prosecutors have conducted search and seizure against the crypto exchange UPbit, on charges of fraud.

The financial investigation team of the Seoul Southern District public prosecutors’ office sent prosecutors and investigators to UPbit headquarters in the Gangnam District on the 10th and 11th of May to secure computer hard disks and accounting records.

According to prosecutors, the company has been transferring funds from customer accounts to a separate account. The separate account is suspected to belong to an executive at UPbit.

The prosecutors have been investigating domestic exchanges since March this year. Last month Kim Ik-hwan, chairman of Coinnest, was detained over charges of embezzlement and fraud.