Prosecutors in South Korea have raided the office of the largest cryptocurrency exchanges of the country, UPbit.

According to CoinDesk Korea, investigators of Prosecutor’s office of the southern district of Seoul on may 10-11, raided the headquarters of the exchange in Gangnam-GU.

UPbit is suspected of fraud for allegedly selling cryptocurrency to customers, which the exchange does not actually possess. The company also is suspected in the transfer of funds from customer accounts to a separate account, which, presumably, belongs to the leadership UPbit.

According to a statement from prosecutors:

“We confiscated hard disks and account books. It is expected that the analysis will take a few days.”

The representative UPbit said that he is not ready to comment.

However, the web site confirms the incident and says that the exchange continues to work in normal mode:

“UPbit is currently under investigation by the Prosecutor’s office, but we continue to work hard. Services UPbit, such as committing transactions and withdrawals are working normally. Your assets are securely stored on your account, so you can continue to use the services UPbit”.

The search occurred within a large-scale investigation by regulators of the country activities of cryptocurrency exchanges. In March, prosecutors raided the offices of three of the cryptocurrency exchanges on suspicion in transfer of funds from client accounts. The first defendant was Coinnest. In April, Kim IK-hwan, Chairman Coinnest, was arrested on charges of embezzlement and fraud.

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