Cryptocurrency Exchanges Raided By South Korean Authorities

The Seoul Southern District Prosecutors’ Office reportedly searched the offices of three cryptocurrency exchanges suspected of buying bitcoin with money stolen from customers’ accounts.

According to local publication Chosun, allegations of embezzlement by staff prompted the raids, with certain staff and executives being suspected of using money from customer accounts in order to buy cryptocurrencies from other exchanges. Hard disks, transfer receipts, mobile phones, and accounting files have been confiscated during the raids.

A prosecutor was quoted saying: “The firms turned up on our radar in January during our investigation of suspicious money transfers between bitcoin exchanges that were detected during an audit by the Financial Services Commission (FSA) and the Korea Financial Intelligence Unit.”

The FSA has reportedly taken control of the three crypto exchange platforms. However, the names of the exchanges under suspicion have not been revealead.

The government of South Korea has been trying hard to put the local crypto sector under control. The government has restricted cryptocurrency trading, outlawing anonymous virtual accounts at the end of January. Initial coin offerings (ICO) were banned in September 2017, although recent reports suggest that regulators may be considering softening that stance.

Source: Read Full Article