The entire team behind UPbit, which is currently the most significant crypto exchange in South Korea, waited with bated breath for the results of their audit. Their audit report came out today and fortunately, the stressful wait came to an end on a positive note. The exchange came out clean after the investigation. They were accused of balance sheet manipulation and inflated volumes but they were able to show 100 per cent of the amount that their balance sheet demonstrated.
Back in may, UPbit was raided by local police authorities who claimed that the exchange had exaggerated their volumes and there were discrepancies in their balance sheet. Their hard disks and accounting books were confiscated by South Korea’s top financial regulatory body, Financial Services Commission (FSC), and the Korea Financial Intelligence Unit (KFIU) after a tip from a yet unrevealed source.
Fortunately UPbit had hired one of the best accounting firms in South Korea, Yoojin, to maintain the balance sheet of the company and enable them to hold up all the financial claims that the company had made. Yoojin brought some brilliant news to the exchange and claimed that their sheets matched with the claims that they had made.
The indecision over UPbit and the government’s reluctance to release any further information on their fate had led to a massive confusion all over South Korea’s crypto market, since UPbit is the largest exchange in the country.
The August 4th report came from, Dunamoo, a subsidiary company of Kakao, which operates KakaoPay, KakaoStock, KakaoTaxi, KakaoTalk, and KakaoStory, and is one of the primary internet conglomerates of the country.
The president of Dunamoo, Lee Seok-woo, said:
“UPbit currently has the exact amount of money held by the platform’s investors along with additional funds, more than enough to compensate every investor. Hence, UPbit is able to process withdrawals for customers upon the request of its customers and the exchange will continue to release audit reports on a regular basis to prove its solvency.”