South Korean Crypto Exchange UPbit Proves Its Full Solvency
The South Korean crypto exchange UPbit is 100% solvent, according to the report of the audit company Yoojin. The financial check revealed that the trading platform has enough funds to serve all users to the full extent, Forbes reports.
This May, the Financial Services Commission of South Korea inspected the offices of the country's largest crypto exchange for fraud, since law enforcement agencies received several anonymous complaints. Investigators seized the hard drives and documentation of UPbit in order to assess its solvency. Nevertheless, the exchange continued to work as usual.
After the authorities conducted the inspection, the bitcoin exchange rate fell below $9000 (in May the rate of the first cryptocurrency was approaching $10,000), which affected the rate of the ether and other altcoins, which lost up to 15% in price. News about UPbit's solvency reassured investors, although bitcoin is still experiencing a downward trend.
Screenshot of bitcoin chart on CoinMarketCap
Auditors from Yoojin found out that UPbit crypto exchange is able to process all withdrawal requests of users, as investors' funds and additional assets are sufficient for this. The South Korean authorities have not yet confirmed the validity of this inspection. The exchange team will regularly publish reports as a proof of solvency in the future.
Screenshot from the UPbit official website
UPbit was founded in 2017 with the support of developers of the crypto exchange Bittrex (US). The platform is the leader in the domestic market of South Korea with a daily turnover of $1 billion.