South Korean authorities have conducted raids on two of the country’s largest cryptocurrency exchanges, Upbit and Bithumb, in connection with a cryptocurrency scandal involving lawmakers. The raids were conducted by the Seoul Metropolitan Police Agency’s cybercrime investigation unit, which is investigating allegations that lawmakers received bribes in exchange for promoting certain cryptocurrencies.
The investigation centers around a company called Coinbit, which is accused of manipulating the prices of cryptocurrencies on its platform. According to reports, Coinbit allegedly created fake accounts to inflate trading volumes and manipulate prices. The company is also accused of using these fake accounts to bribe lawmakers to promote certain cryptocurrencies.
The investigation has led to the arrest of several individuals, including the CEO of Coinbit, who is currently facing charges of fraud and embezzlement. The investigation has also led to the suspension of trading on Coinbit’s platform.
The raids on Upbit and Bithumb are part of a wider crackdown on cryptocurrency exchanges in South Korea. The country has been tightening regulations on cryptocurrency exchanges in recent years, following a number of high-profile hacks and scams.
In 2018, South Korea introduced new regulations requiring cryptocurrency exchanges to register with the Financial Services Commission (FSC) and comply with strict anti-money laundering (AML) and know-your-customer (KYC) requirements. The regulations also require exchanges to use real-name bank accounts for customer deposits and withdrawals.
Despite these regulations, South Korea remains a major player in the global cryptocurrency market. The country is home to some of the world’s largest cryptocurrency exchanges, including Upbit and Bithumb, and has a thriving cryptocurrency community.
However, the recent scandal involving lawmakers and cryptocurrency exchanges has raised concerns about the integrity of the industry in South Korea. The raids on Upbit and Bithumb are a clear signal that the authorities are taking these concerns seriously and are committed to cracking down on any illegal activities in the industry.
In conclusion, the raids on Upbit and Bithumb are part of a wider crackdown on cryptocurrency exchanges in South Korea. The investigation into the alleged bribery of lawmakers by Coinbit has raised concerns about the integrity of the industry in the country. The authorities are taking these concerns seriously and are committed to cracking down on any illegal activities in the industry. It remains to be seen what impact these raids will have on the cryptocurrency market in South Korea and beyond.
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- Source: https://zephyrnet.com/upbit-and-bithumb-raided-over-lawmaker-crypto-scandal/