Crypto markets are in free fall at 6am New York time (11am London/8pm Sydney) after South Korean prosecutors conducted a search and seizure against the country’s largest cryptocurrency exchange, UPbit.
Sources indicate that prosecutors have alleged that Upbit has committed fraud by transferring funds from customer accounts to an account owned by a company executive.
The cryptocurrency exchange is still in operation, but South Korea traders appear to have been hurrying to close positions in case it is closed by regulators.
As we go to press, markets are deep in the red:
Bitcoin (BTC) is down 7% to $8,695.40.
Ethereum (ETH) is down 10% to $689.80.
Ripple (XRP) is down 15% to 68 cents.
Bitcoin Cash (BCH) is down 17% to $1,381.36.
EOS (EOS) is down 17% to $15.08.
Litecoin (LTC) is down 10% to $142.22.
This is not the news the market wanted to hear when sentiment was so low. We’ll keep you updated as and when news becomes available. Upbit has yet to respond to the news.