November 24, 2024
Upbit holds 103% of cryptocurrency deposits in reserves
[THE INVESTOR] Korea’s largest cryptocurrency exchange Upbit on Aug.3 said it has excess amounts of cryptocurrencies and cash reserves to provide clients upon request.
In its publicized due diligence report completed by Eugene Accounting Corp., Upbit operator Dunamu said its cryptocurrency reserve ratio stands at 103 percent of total deposits made by customers with cash reserve ratio of 127 percent. The company, however, has not revealed the exact figures.
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“We hold excess amounts of cryptocurrency and cash reserves than what we have to pay our customers,” said Dunamu CEO Lee Sir-goo. “This indicates we are able to pay whenever our customers wish to (withdraw).”
The report, which was completed after checking the company’s balance in its digital wallet and bank account, is available for the public on its website.
The disclosure arrives amid the latest probe by prosecution on Upbit, and other major cryptocurrency exchanges, accusing them of inflating their balance sheets without holding sufficient reserves.
By Ahn Sung-mi (sahn@heraldcorp.com)
