Police have launched an investigation into Coinup, a cryptocurrency issuer, on fraud charges, searching the company’s two offices in southern Seoul.

The Suseo Police Station sent 50 investigators to the offices Tuesday morning to search them for three hours and 30 minutes.

Police received a seizure and search warrant on suspicions that Coinup had perpetrated fraud and performed illicit financial activities and seized hard discs, a list of investors and funding details. A police officer said, “Investigators have been conducting a probe after being tipped about the alleged fraud case.”

Launched last year, Coinup has been receiving investment, stating that it will list its unlisted WEC (World Exchange Coin) token on major cryptocurrency exchanges at home and abroad. The company attracted money by deceiving investors with such hollow remarks: “if 10 million won is invested, 15 million won will be returned eight weeks later” or “if 10 million won is invested, 50 million won will be returned two months later.”

In its press release Monday, the Korea Blockchain Association cautioned that no member crypto exchanges had listed or considered listing Coinup. /yjk@decenter.kr

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