UPbit, South Korea’s exchange, triumphs over allegations; Audit report in favour
UPbit, the largest South Korean crypto exchange has successfully negated all accusations brought against it after the release of audit report. The audit report of clearance has been released on 4th August, 2018, thereby, providing UPbit with a sense of respite.
The local authorities began raiding the exchange on 11th May, 2018 suspecting inflated volumes and mishandling of balance sheet. On the grounds of accusations by anonymous sources, Korea Financial Intelligence Unit [KFIU] and South Korean watchdog, Financial Services Commission gather hard disks, data and accounting details. The exchange was accused of being insolvent by those unknown entities.
At that time, Yoojin, one of the prominent accounting firms of South Korea was appointed by crypto exchange for validating its holdings. The local media has commented, “Since early 2018, UPbit created snapshots of its multi-signature wallets and funds stored within them for auditing purposes. Yoojin accounting firm, a major accounting firm based in Seoul, confirmed that all of the funds on the UPbit platform match the cryptocurrency holdings of UPbit stored in its multi-signature wallets.”
Final clearance report
Despite the clarification and clean chit given by Yoojin, the South Korean government failed to realise the authentication of this exchange. Dunamoo is Kakao’s subsidiary company which is the primary internet organisation that is responsible for operating KakaoTaxi, KakaoPay and many other services in South Korea. In this case, Dunamoo has published a report on 4th August, 2018 referring to Yoojin’s audit results.
According to a report by CCN, the president of Dunamoo, Lee Seok-woo has commented, “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.”
With the release of the results of audit report conducted by Yoojin, the exchange could take a sigh of relief three months back. However, without the official declaration and clearance from KFIU and Dunamoo, the investors were sceptical about the balance sheets and hesitant about the operation of the South Korea based exchange. However, the 4th August published Dunamoo’s official statement nullified all the false allegations and accusations against UPbit, thereby, proving the exchange, solvent.
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