South Korea’s UPbit Exchange Displays Audit Details
UPbit, one of the top leading cryptocurrency exchange platforms in South Korea has been reported to possess reserve ratios at around 103 percent and a cash quota of about 127 percent as per reports of Yuijun, a leading accounting company in South Korea, and the announcement by UPbit this month.
UPbit requested an audit to prove the company’s integrity and authenticity following a raid on the exchange’s offices and a server confiscation last May by official authorities within the area. UPbit was the target of several accusations related to malicious activities including tampering with prices and many other suspected illegal acts.
Dunamoo, an extended outlet of Kakao, the top internet enterprise within the country, owns UPbit and oversees its operations as part of the many companies, startups, and exchanges that Kakao owns. The chief executive officer, Lee Seok-woo, stated that the company reserves significant amounts of digital and fiat currencies than required to pay customers with. According to him, this is presented as a confirmation of available assets and that any customer looking to withdraw is ensured his payment.
Several controversial incidents have riddled South Korea’s crypto-community. YouBit saw its own attack go underway during December of last year which resulted in complete bankruptcy following a 17 percent loss in the assets belonging to its clients. Bithumb, another leading crypto-exchange, also fell victim to another hack and momentarily ceased all new account creation and executive figures from Coinnest also saw their own interrogations after several accusations of client asset theft had been reported.
Although government officials have displayed a willingness to thoroughly investigate these allegations and scams, no confirmed reaction the ordered audit by UPbit has been published. As it stands now, the official regulations within most avenues that provides difficulty in being able to recognize a hacking attack, most likely externally, or an elaborate scam from within the company. Officials are already undergoing new plans for a quick update on regulatory policies.