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Bitcoin lost more than 5% on news from South Korea

UNITED STATES (OBSERVATORY) –┬áThe prosecutor’s office of the South-Seoul region reported that after a search at the head office of the Upbit cryptographic exchange Upbit, hard drives and accounting documents were confiscated in Seoul’s Gangnam district.

This is the second raid on the national currency exchange by South Korean financial regulators since March. In the first case, the chairman of the board of directors, Kim Ik-Khvan, was arrested on charges of embezzlement and fraud.

It is assumed that Upbit transfers funds from clients from their crypto currency exchange account to a representative or executive account. KBS reported that prosecutors raided the stock exchange on suspicion that it had sold more virtual currencies than it had.

Upbit confirmed the news, and said that the company is working hard on this. “Currently, all transactions, deposits and withdrawals, such as” up-bit “services, operate normally, the press release says. “Client assets are safely stored in the account.”

Upbit posted on its website a message warning its customers to pay special attention to the fight against fraud with loans on the exchange accounts.

According to Coinmarketcap, Upbit is the world’s fourth largest crypto exchange, which has a 24-hour trading volume of $ 1.812 billion.

South Korean authorities have taken several regulatory actions to control the “crypto-currency madness” that affected the fourth-largest economy of Asia, which also became the third largest market for crypto-currency in the world.

Today, bitcoin started the day around $ 9,100, but then in several consecutive sell-off waves, collapsed to a 3-week low at $ 8,604, losing 5.4%.