Top cryptocurrency exchange Upbit raided
Lee Seok-woo leads Dunamu, the operator of Upbit. / Courtesy of Journalist Association of Korea
By Oh Young-jin
Prosecutors raided the office of Upbit, Korea's largest cryptocurrency exchange, Friday afternoon.
They suspect that the exchange has manipulated its electronic trading system to deceive investors into believing it has more cryptocurrency than it has.
They confiscated electronic files and ledgers, among other things.
Upbit is operated by Dunamu, of which former Kakao president Lee Seok-woo is president. The company has just launched the Upbit Cryptocurrency Index.
Prosecutors were reportedly looking into whether Lee was involved.
The probe into the cryptocurrency exchanges began in March ― two officials have been arrested on charges of swindling and breach of trust ― for allegedly siphoning customers' money into company executives' accounts.
The news sent down the prices of the cryptocurrencies.