Three Korean Bitcoin Exchanges Accused of Money Laundering And Possible Suspicion Of Buying Bitcoin With Money They Stole from Customers Accounts

Three cryptocurrency exchanges has been raided this past week over suspicion of embezzlement of funds from its customers account.

According to its local news report, that its executives and its staff were suspected of siphoning money off its customers accounts and using it to buy cryptocurrencies at other exchanges, from Chosun.com source.

The Seoul Southern District Prosecutor officer reportedly to confiscated hard drives, mobile phones, money transfer receipts and account files to look into the suspicion of cheating its potential investors.

”the firms turned up on our radar in January during our investigation of suspicious money transfer between Bitcoin exchanges that were detected during on audit by the Financial Services Commission and the Korea Financial Intelligence Unit.”

From another reports state that exchanges already have been taken over by its countrys financial watchdog and its company is already being charged with embezzlement.

In January, when it first outlawed all the anonymous virtual accounts, it also investigated possible insider trading of cryptocurrencies by its own staff and that it would make public of any of its findings to the public. Furthermore, the initial coin offerings (ICO) were already banned in September last year, even though they are reconsidering to softening the stance this week.