South Korea's Largest Exchange UPbit Cleared of Insolvent Allegations by FSC

Hacks & Frauds 1 min, 24 sec READ

by MIchael Collins

The Financial Services Commission has cleared UPbit of all fraudulent accusations claiming the exchange was insolvent this past May.

The Financial Services Commission (FSC) has finally cleared UPbit of accusations claiming the crypto exchange was insolvent. Audit reports from Yoojin, a large South Korean accounting firm, and Dunamoo, a subsidiary of Kakao, complement each other's findings that UPbit is storing its bitcoin and cryptocurrency balance sheet in its entirety.

The two-month-long process and its results should provide yet another boost to UPbit which has only recently taken over Bithumb for a leading market cap.

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 report on a regular basis to prove its solvency. / Lee Seok-woo, Dunamoo President

Investors feeling secure with exchanges is one of the leading concerns existing in the crypto environment. When accusations emerged in May, investors found their accounts frozen and no ability to make crypto withdrawals. The signs of yet another exchange collapse were there, but clearance from the FSC should help to mitigate and FUD that was created during the investigation.

Bitcoin's price continues to drop; the popular token has plummeted over 17% in the past two weeks. With so little consistency from cryptocurrencies through 2018, any positive news within the industry is a good sign. UPbit's clearance of accusations will likely lead to a return in climbing value for the exchange as the battle among the Korean entities only grows with time.

Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.