[2018-12-21] Executives at Korean Crypto Exchange UPbit Indicted for Fraud

[tyz]

According to a report from CoinDesk Korea on Friday, the Prosecutors’ Office of the southern district of Seoul has indicted three senior staff members, including founder Song Chi-Hyung, on charges of fraud.
The executives are alleged to have made fraudulent transactions between September to December of last year, using a fake corporate account to make bogus orders worth 254 trillion won (or $226.2 billion) to inflate trading volume figures and attract more customers to the exchange.
https://www.coindesk.com/executives-at-korean-crypto-exchange-upbit-indicted-for-fraud

[bbc.reporter]

I reckon there is more to that story than to inflate trading volume. Some cryptocoin exchanges main purpose might be to launder money. They might also be secretly started and founded by money launderers.

[gentlemand]

Korea was the new China, even clearly more so now. Let's see if they shut down in the same way too. I can't say anyone's been too impressive throughout. The government seemed as useless as the exchanges in trying to keep some order.

[bbc.reporter]

@gentlemand. If they also shutdown, I reckon another country will welcome all that cryptocoin liquidity in their borders.

I speculate that Singapore and Hong Kong will set up a more welcoming legal environment for the cryptospace in Asia, Switzerland and Malta in Europe.

[gentlemand]

@gentlemand. If they also shutdown, I reckon another country will welcome all that cryptocoin liquidity in their borders.

I speculate that Singapore and Hong Kong will set up a more welcoming legal environment for the cryptospace in Asia, Switzerland and Malta in Europe.

As far as I can tell Korean money can't go anywhere else, or at least not in significant amounts. That's why their prices have always been so out of kilter compared to everywhere else. The only effect Korea has on anywhere else is them sucking up supply, but they were probably being sold non existent coins anyway.

[stompix]

I reckon there is more to that story than to inflate trading volume. Some cryptocoin exchanges main purpose might be to launder money. They might also be secretly started and founded by money launderers.

Yeah, it's simply 5 words down the road

to inflate trading volume figures and attract more customers to the exchange.

All those exchanges that out of the blue claim to run millions of orders a day are doing the same, boosting their numbers, climbing the ranks on that garbage indexes like CMC and attract more customers > more fees.

@gentlemand. If they also shutdown, I reckon another country will welcome all that cryptocoin liquidity in their borders.

You mean the next country to be overrun by exchanges with fake numbers?
There was no money (or simply there were only 1% of what they claimed), there will be no money going to other exchanges or to other countries.

[stomachgrowls]

So, this talks with UPbit.Lets see on how they would able to pass up this allegation.Currently they are still on top 5-10 ranking on exchange either on adjusted/reported
volume.
Im aint surprised that there are exchangers who would definitely made such fraud to fasten up their reputation/rankings/popularity.

[figmentofmyass]

i'm honestly surprised to see the korean government cracking down and indicting people this quickly. the circus in china went on for a few years before the government did anything about it.

$226.2 billion = a lot of fake orders! since the orders were "bogus", i assume they weren't ever matched with customer orders. so it might just be about inflating volume as suggested.

upbit shares order books with bittrex...... i wonder what this means for them.

[Yutard]

According to a report from CoinDesk Korea on Friday, the Prosecutors’ Office of the southern district of Seoul has indicted three senior staff members, including founder Song Chi-Hyung, on charges of fraud.
The executives are alleged to have made fraudulent transactions between September to December of last year, using a fake corporate account to make bogus orders worth 254 trillion won (or $226.2 billion) to inflate trading volume figures and attract more customers to the exchange.
https[Suspicious link removed]cutives-at-korean-crypto-exchange-upbit-indicted-for-fraud

If inflating transaction volume is a crime, many Chinese exchanges should be indicted.

[manfredmann]

Because cryptocurrency has no real regulations for now this is why the scammers has a lot of courage to take scamming activities. If you only cryptocurrency will be legally adapted and passed on law and make a penalty for those will going to violate the regulations. THis is also way better to secure the investment of the investors.

[bbc.reporter]

@gentlemand. If they also shutdown, I reckon another country will welcome all that cryptocoin liquidity in their borders.

I speculate that Singapore and Hong Kong will set up a more welcoming legal environment for the cryptospace in Asia, Switzerland and Malta in Europe.

As far as I can tell Korean money can't go anywhere else, or at least not in significant amounts. That's why their prices have always been so out of kilter compared to everywhere else. The only effect Korea has on anywhere else is them sucking up supply, but they were probably being sold non existent coins anyway.

Is it not why the price of bitcoin is higher than the rest of the exchanges? I reckon many of the Korean whales must have a high potion of their trading networth in cryptocoins by now.

[btyco]

Is anyone actually surprised about this? Upbit just came out of no-where any there aren't many people that say that they are fans of upbit. People talk about binance, huobi, and kucoin, no mention of upbit

[BitHodler]

Is anyone actually surprised about this? Upbit just came out of no-where any there aren't many people that say that they are fans of upbit. People talk about binance, huobi, and kucoin, no mention of upbit

The only thing that surprises me is that people continue to make the same mistake over and over again. How many more exchanges need to implode or publicly be called out for being a crook organization?

I know it's not exactly fair to say, but some people are really begging to lose their funds, otherwise you wouldn't value potential gains over your crypto funds. I really expected people to wake up at some point, but nope, it didn't happen.

Huobi isn't that much of a good and fair exchange either, more like a notorious volume faker, but at least they have quite a significant user base and over 100,000BTC in their main cold wallet.

[figmentofmyass]

Is anyone actually surprised about this? Upbit just came out of no-where any there aren't many people that say that they are fans of upbit. People talk about binance, huobi, and kucoin, no mention of upbit

"came out of nowhere"? that doesn't mean anything in crypto. bitcoin isn't even a decade old yet---every significant business comes of nowhere. binance looked like an ICO scam 1.5 years ago. kucoin has barely been around for a year. neither were considered trustworthy until fairly recently.

the reason upbit got hyped so much is because they partnered with bittrex (to share order books etc) when bittrex was the biggest altcoin exchange in the world. in mid 2017, bittrex was a very big deal.

The only thing that surprises me is that people continue to make the same mistake over and over again. How many more exchanges need to implode or publicly be called out for being a crook organization?

i'm surprised that you're surprised. this market is perpetually rife with greedy noobs looking to get rich quick---what do you expect to happen?