Native cryptocurrencies turned out to be the most important issue contributing to the demise of quite a few exchanges and ecosystems this yr, most lately through the FTX meltdown. Korea's monetary authority, the Korea Monetary Intelligence Unit (KoFIU), took notice when it launched an investigation into crypto exchanges associated to the itemizing of their inside self-issued tokens.
Crypto alternate FTX and its 130 subsidiaries lately filed for chapter on account of a value drop of their in-house token, FTX Token (FTT). Whereas Korean crypto exchanges are banned from issuing native tokens, KoFIU's investigation is to make sure compliance with investor security rules, according to for an area report.
Preliminary investigations revealed that every one crypto exchanges had been conducting professional operations throughout South Korea. Nonetheless, a spokesman for the Monetary Providers Fee (FSC) revealed plans for a deeper investigation as "some doubts nonetheless stay relating to the agency's inside token listings".
Flata Alternate is likely one of the prime suspects and is below investigation for the itemizing of its inside token FLAT in January 2020, as reported by native media Yonhap. Main exchanges like Upbit and Bithumb have been cleared by authorities and investigations will focus extra on smaller exchanges.
On common, 297,229 distinctive South Korean customers visited FTX.com month-to-month, placing South Korea topping the record of nations hardest hit by the FTX collapse, CoinGecko evaluation confirmed.
Associated: South Korean prosecutors urge Terra co-founder Shin Hyun-seong to cooperate: report
South Korean authorities have frozen roughly $104.4 million (140 billion received) from FTX co-founder Shin Hyun-seong on suspicion of cashing in on unjustified LUNA gross sales.
The Seoul Southern District Court docket upheld the choice to freeze Shin's belongings pending additional investigations.
