Crypto Market Plunges as Korean Exchange Is Investigated

posted on

2 min

Just as the cryptocurrency market was beginning to recover from last weekend’s $20 billion market cap loss, cryptocurrencies took another major hit this afternoon.
Bitcoin is down more than $600 dollars from yesterday’s high of $9,396, and is currently trading at $8,734. Bitcoin Cash, now trading at $1,359, has taken the biggest hit at the time of writing, plunging over 18% in the last 24 hours. EOS and XRP are also suffering steep losses, with their prices down 17% and 16%, respectively.

Cryptocurrency Market Data by
Cryptocurrency Market Data by

Upbit exchange suspected of fraud

The market’s current decline coincides with news that South Korea’s most prominent cryptocurrency exchange, Upbit, is under allegations of fraud. According to local media outlets, a financial investigation team from the Prosecutors’ Office of the southern district of Seoul raided Upbit’s headquarters on May 10, resuming their search on May 11.
The exchange is suspected of falsifying records to appear that it holds more cryptocurrency than it actually possesses while selling nonexistent cryptocurrency to customers. Other reports indicate that the company has been transferring funds from customer accounts to a separate account possibly belonging to an Upbit executive. Investigators said they have confiscated several of the exchange’s hard disks and accounting records.
Given that Upbit is the world’s fourth largest cryptocurrency exchange by volume, the entire cryptocurrency market is feeling the impact. In response to news of the raid, South korean traders withdrew large amounts of cryptocurrencies from Upbit, sending the market into a downward spiral. However, trading volume seems to be climbing back up, suggesting that cryptocurrencies could make a comeback soon.
[cta_en link=”″ name=”Trade here”][/cta_en]

general risk warning

CFDs are complex instruments and entail a high risk of losing money rapidly due to leverage.

83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

NOTE: This article is not an investment advice. Any references to historical price movements or levels are informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future. Information regarding past performance is not a reliable indicator of future performance. Forecasts are not a reliable indicator of future performance. In accordance with European Securities and Markets Authority's (ESMA) requirements, binary and digital options trading is only available to clients categorized as professional clients.


What should you learn next? Turn the wheel to find out!

TED Deposit Guide: Step by Step

you may also like