South Korean financial authorities found that several troubled cryptocurrency exchanges failed to properly return user assets during their investigation

2024-06-06 11:35:40

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ChainCatcher news, according to Yonhap News Agency, South Korean financial authorities recently investigated several virtual asset service providers (VASP) that are closing or suspending operations and found serious violations. During on-site inspections from May 20 to 23, the Financial Intelligence Unit (FIU) and the Financial Supervisory Service discovered that 7 out of the 10 inspected VASPs failed to properly return user assets.

In addition, 3 companies showed significant deficiencies in guiding users, only contacting users with assets exceeding 1 million won (approximately 732 USD). These VASPs have also been criticized for restricting users from withdrawing to overseas exchanges or personal wallets and charging high fees in the process. South Korean authorities have clearly stated that they will take strict measures against these violations.

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