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Thursday, 15 March 2018

Crypto-Theft: South Korean Exchanges Raided For Stealing Funds

The South Korean authorities have raided the offices of three cryptocurrency exchanges for allegedly diverting customer funds. According to the officials, the companies came under the radar after investigations of dubious transfers were carried out. The raids were carried out this week.


  • South Korean authorities have raided three cryptocurrency exchanges for allegedly diverting customer funds and using them to buy cryptocurrency.
  • Investigators are also out to find out if money has been raised through other dubious means such as defrauding potential investors.
  •  The transactions were detected during an audit by the Financial Services Commission and the Financial Intelligence Unit. Hard disks, transfer receipts, mobile phones, and accounting files have been confiscated during the raids.
  • The South Korean authorities have been having a hard time controlling crypto-trading in their region.
  • They introduced a new technology to end anonymous trading and enforce real-name verification.
  • Banks were ordered to stop issuing 'virtual accounts' which was requested by cryptocurrency exchanges to manage their clients' money.
  • The regulation of crypto-currency however in the South Korean space has been proving very difficult as authorities are complaining about their limitations within the South Korean legal framework.
  • The Country has however announced stricter requirements for crypto-exchanges.
  • The Korean country is home to the largest cryptocurrencies in the world, which indicates that cryptocurrencies have come to stay with them.
What measure do you think could be put in place to prevent such crimes from recurring?

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