Three South Korean cryptocurrency exchanges have reportedly been raided by prosecutors suspecting embezzlement of user funds. Korean publication Chosun is reporting a series of raids this week by the Seoul Southern District Prosecutor’s Office on three separate cryptocurrency exchanges as a part of an investigation into the alleged siphoning of customer funds. The exchanges’ executives and staff are suspected of using fiat deposits from customer accounts to buy cryptocurrencies at other exchanges.
During the raids, prosecutors also confiscated money transfer receipts, mobile phones, accounting statements and computer hard drives belonging to the exchanges. Few details are known currently. The names of the exchanges under suspicion have not been revealead. A prosecutor from Seoul claimed the office was alerted to the potential misuse of customer funds during an external audit into cryptocurrency exchanges by Korea’s regulator and watchdog.