UPbit the largest Cryptocurrency platform in Korea, cleared its name following an Audit Raid
Presently the largest digital money platform in South Korea got a clean bill of health according to audit account which verified that 100% of the cash in the exchange’s balance sheet was spot on.
The May Police Audit Raid
On the 11th of May, according to a CCN story, UPbit got invaded by the government on the notion of exaggerated volumes and balance sheet manipulation. The Financial Services Commission (FSC), South Korea’s major economic watchdog plus Korea Financial Intelligence Unit (KFIU) during that time confiscated accounting books and hard disks belonging to UPbit to assess allegations from unidentified sources claiming the platform was bankrupt.
Four days following the incursion, UPbit appointed Yoojin which is among the biggest accounting companies in South Korea to authorize the investments of the platform and its balance sheet as well. On the 5th of May, UPbit formally got cleared by Yoojin, indicating that all holdings belonging to UPbit precisely corresponded to the user funds amount declared on their balance sheet.
In line with local reporters from the beginning of 2018, UPbit made photos of the company’s multi-signature funds and wallets in their possession for the purpose of auditing. Yoojin based in Seoul and a key accounting company as well verified that all money on UPbit’s exchange is in line with the crypto holdings of UPbit secured in the firm’s multi-signature wallets. However, in spite of the Yoojin’s audit report, authorities did not make public any extra information on that case, making financiers to contemplate on UPbit’s status, the nation’s leading digital money exchange, moreover, if the exchange was a safe bet.
Today, 4th of August, Dunamoo, an auxiliary firm belonging to Kakao, the country’s key Internet corporation that runs KakaoStock, KakaoStory, KakaoTaxi, KakaoTalk, and KakaoPay released a story mentioning authorized audit outcomes given by Yoojin.
Dunamoo’s report highlighted that UPbit has 100% of user finances and 27% in excess of the cryptos holdings belonging to the shareholder, too much adequate to repay all users on the exchange. Said, Lee Seok-woo the leader of the Dunamoo firm.
At present UPbit has the precise funds held by the exchange’s financiers plus additional funds, adequate to give back to each shareholder. Thus, UPbit can undertake clients’ withdrawals on request and the platform will carry on giving its audit reports regularly for solvency verification.
Clearance of the storm surrounding UPbit
Whereas UPbit gave the Yoojin audit report in the past three months, owing to official lack of statements from the KFIU and Dunamoo, depositors were doubtful regarding the balance sheet legality and the UPbit operations.
The August 4th authorized Dunamoo statement has decisively verified the firm’s solvency, demystifying all false allegations about UPbit.
Following incapacity of Bithumb to make withdrawals and deposits for more than one month, the company has been beaten by UPbit making it the South Korea leading cryptocurrency exchange. Shareholders anticipate that Gopax, a crypto exchange supported and funded by South Korea’s 2nd most profitable bank Shinhan Bank, to pilot the crypto market of the country in future months.