South Korean Prosecutors Raided 3 Cryptocurrency Exchanges

South Korean prosecutors raided three cryptocurrency exchanges suspecting misappropriation of user funds.

According to the local news reports, South Korean prosecutors are considering three cryptocurrency exchanges in doubt of purchasing Bitcoin with money they stole from customer’s accounts.

Exchange staff and executives are suspects of diverting money from the account of users to their personal account. They also questioned for spending customers money for buying cryptocurrencies at other exchanges.

Exchange Staffs and executive’s belongings including mobile phones, computer hard drives, accounting statements and other documents have been confiscated.

 One of the prosecutors quoted

“The firms turned up on our radar in January during our investigation of suspicious money transfers between Bitcoin exchanges that were detecting during an audit by the Financial Services Commission and the Korea Financial Intelligence Unit”.

According to the local media, the step is intending to securing consumer interest against the exchange’s illegitimate practices.

The operators of the three cryptocurrency exchanges are being charge with embezzlement of customer funds by the country’s financial watchdog, the Financial Services Commission.

This news arises amidst increasing scrutiny of blockchain based businesses in South Korea. The country has dedicated to crack down illicit activities in the crypto industry including money laundering.

By the end of January, the Financial Supervisory Service allegedly showed it was examining. However possibly insider trading of cryptocurrencies by its own team.

After that month, the Korea Customs Services stated that a sum of 637.5 billion in overseas countries had been exchange illegitimately.

The government of South Korea has also restricted cryptocurrency trading, banning anonymous virtual accounts in January. Later, accounts allied with identifying users could be accepting through approved banks.

Stay tuned with us on Twitter and Telegram for more updates on South Korean Crypto Regulations.

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David

David Kariuki is a journalist who has a wide range of experience reporting about modern technology solutions including cryptocurrencies. A graduate of Kenya's Moi University, he also writes for Hypergrid Business, Cryptomorrow, and Cleanleap, and has previously worked for Resources Quarterly and Construction Review magazines.

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