If there was any doubt about the legitimacy and liquidity of Korean cryptocurrency exchange, UPbit, it was put to rest on Saturday, August 4 after Dunamoo released a report of an audit of the exchange. The report confirmed that UPbit did not manipulate figures on its balance sheet as was suspected in May.
UPbit Police Raid and Financial Audit
Financial Services Commission (FSC), and Korea Financial Intelligence Unit (KFIU) of South Korea had in May, raided UPbit crypto exchange under the suspicion of balance sheet manipulation and inflated trade volumes. The regulators accessed the information on the exchange’s data drives.
Days later, UPbit commissioned one of the foremost accounting firms in Korea, Yoolin to conduct an independent audit of its books. Yoolin formally cleared the exchange, stating the exchange was solvent and that its balance sheet figure tallied with the actual funds that users had on the platform.
UPbit Cleared Again
Although UPbit was cleared by the original audit results, investors were still skeptical due to silence on the path of the regulators. However, Saturday’s report by Dunamoo, a subsidiary of Kakao group and the operator of UPbit, will serve to dispel any doubts about the exchange. The report based on the results from Yoolin’s audit of the exchange and stated that UPbit has 27 percent more than the cryptocurrency holdings of its investors. In his statement, Lee Seok-woo, the president of Dunamoo said:
“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 reports on a regular basis to prove its solvency.”
UPbit has become the largest cryptocurrency exchange in South Korea after it dethroned Bithumb which suspended deposits and withdrawal after it was hacked in June. Although Bithumb has resumed deposits and withdrawals, it is still plagued by the security concerns from the hack as its partner bank, NH Nonghyup Bank rejected its contract extension.
Solomon Sunny is the market reporter for Smartereum, one of the global leaders in Ethereum, blockchain and currency news. He produces technical price updates on digital currencies and writes recent developments about blockchain.
