UPBit Third-Party Audit Reportedly Clears Exchange of Fraud Claims

upbit theft

UPBit, South Korea’s largest cryptocurrency exchange, was raided last week by a joint task force consisting of Seoul police and authorities from the Korean Financial Intelligence Unit and Korean Financial Services Commission, over fraud allegations.

UPBit was under suspicions for allegedly moving customer’s funds into wallets owned by executives, stemming from UPBit supposedly only operating wallets of 90 cryptocurrencies despite the exchange listing 130 different cryptocurrencies. According to claims, the lack of wallet support led to the investigation and the South Korean government accusing the exchange of inflating its internal balance sheets.

In an effort to clear its name of any wrongdoing, UPbit contracted auditing firm Yoojin to do an internal audit of the exchange’s operations and bookkeeping. According to Yoojin’s report, UPBit’s books are accurate, and the allegations are a result of a simple misunderstanding of the way UPBit structures their wallet system.

Korean financial site MoneyToday explains that “UPbit created snapshots of its multi-signature wallets and funds stored within them for auditing purposes. Yoojin accounting firm, a major accounting firm based in Seoul, confirmed that all of the funds on the UPbit platform match the cryptocurrency holdings of UPbit stored in its multi-signature wallets.”

Despite the audits stating that UPBit is in the clear, the investigation from Seoul police in conjunction with the Korean Financial Intelligence Unit and Korean Financial Services Commission is still ongoing. After authorities confiscated UPBit’s account records, they stated that the investigation may “take days.”