Cryptoasset Market Corrects as Upbit Investigation and Mt. Gox Trustee Spook ...

[mskumar]

The price of bitcoin corrected by 12 percent in the past week to close at $8,500 as investors were concerned about what the raid of South Korean bitcoin exchange Upbit meant for future bitcoin regulations in the leading bitcoin economy.

On May 10, 2018, South Korean law enforcement agents and financial regulatory officials confiscated paper and digital records and are reportedly in the process of combing through the lot to obtain evidence.

Reports making the rounds in the country reveal that the Upbit is being investigated for engaging in illegal movement of cryptocurrency from wallets of their clients. According to news sources, authorities suspect that client funds are being moved to wallets owned by executives of the platform without the knowledge of the depositors.

That was not the only bad news for bitcoin holders. Last week, Mt. Gox trustee, Nobuaki Kobayashi, once again moved a large number of bitcoin (BTC) from the company’s wallets, which can only mean that he is about to sell more coins as part of the defunct exchange’s bankruptcy procedures.

Having said that, the market has been aware of Nobuaki Kobayashi’s selling pressure, which will be a continuing feature of this year’s bitcoin market so it should only cause temporary volatility as opposed to a year-long downward trend. After all, it is in his incentive to sell Mt. Gox’s coins little by little during bitcoin highs.
SOURCE:https://btcmanager.com/cryptoasset-market-corrects-as-upbit-investigation-and-mt-gox-trustee-spook-investors-wir-may-15/