Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • TRADE
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • TRADE
Crypto Flexs
Home»BITCOIN NEWS»70% of dead Korean exchanges leave investors high and dry
BITCOIN NEWS

70% of dead Korean exchanges leave investors high and dry

By Crypto FlexsJune 8, 20243 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
70% of dead Korean exchanges leave investors high and dry
Share
Facebook Twitter LinkedIn Pinterest Email

Investors in South Korea’s booming cryptocurrency market are facing a digital storm after shocking revelations from financial regulators. According to a joint study by the Financial Supervisory Service (FSS) and the Korea Financial Intelligence Unit (FIU), as many as 70% of closed cryptocurrency exchanges neglected customers and failed to return invested funds.

Hidden Dangers of Lesser-Known Coins

This news is gut-wrenching news for the more than 6 million Koreans, or about 10% of the total population, who have dipped their toes into cryptocurrency pools. Unlike their global counterparts, Korean investors are known to dabble in riskier and lesser-known cryptocurrencies in addition to established names like Bitcoin.

The report paints a grim picture of industry practices. Many of these non-existent exchanges did not even warn users before pulling the plug, leaving users scrambling to recoup their investments. Even where some form of notice has been given, the evacuation process has been described as an ‘extreme inconvenience’ due to the lack of staff to deal with the potentially overwhelming number of claims.

It was found that 7 out of 10 domestic cryptocurrency exchanges do not return money to investors when they close or cease operations. (Hankook Ilbo) https://t.co/ws2wtzd2qu

— Financial Services Commission – Financial Services Commission of Korea (@FSC_KOREA) June 7, 2024

A stern warning to CEOs

The Financial Supervisory Service is working hard to strengthen trust in the digital asset market. They pledged to work closely with other financial watchdogs to develop stricter regulations for the closure of financial companies, especially cryptocurrency exchanges. They also issued a stern warning to CEOs of digital asset service providers, reminding them to comply with the Crypto Asset Investor Protection Act, which is scheduled to come into effect in July.

While the potential for high returns is undeniable, the risks associated with this largely unregulated market are becoming increasingly evident. While the FSS struggles to create a regulatory noose, cryptocurrency investors in South Korea would be wise to tread cautiously. Otherwise, you risk getting caught up in the next digital seizure.

BTC is currently trading at $69,328. Chart: TradingView

Police arrested a Korean scammer.

Adding to the confusion, South Korean law enforcement recently arrested 19 people involved in a fraudulent “cryptocurrency reading room” scam that defrauded more than 300 investors out of $19 million. Operating on platforms such as Telegram, the gang posed as cryptocurrency experts and lured victims with promising information and fake guarantees.

They used fake apps linked to fake exchanges to lure victims in to make initial profits, then charged them rigged ‘withdrawal fees’ and blocked their communications. The investigation uncovered a shocking recruitment tactic called ‘pig slaughter’, where victims were promised jobs in Myanmar but were forced to commit fraud upon arrival.

Featured image from The Korea Herald, chart from TradingView

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

As Nano Labs begins to accumulate $ 1 billion, BNB gets a big supporter.

July 5, 2025

Bitcoin is integrated into less than $ 108,000, but the eyes are set for $ 115,000.

June 29, 2025

Sequans starts $ 384M Bitcoin Treasury Initiative with Swan Bitcoin Partnership.

June 23, 2025
Add A Comment

Comments are closed.

Recent Posts

GUNZ Announces $GUN Token Expansion To Solana

July 7, 2025

NEXST Launches Web3 VR Entertainment Platform With K-Pop Group UNIS As First Global Partner

July 7, 2025

Elon Musk announces that his “American Party” will accept Bitcoin and criticizes Trump’s financial bill.

July 7, 2025

From Wall Street to Wallet: Ark Defai redefines financial architecture.

July 7, 2025

What Every Investor Should Know

July 6, 2025

Protecting Your Portfolio In A Volatile Market

July 6, 2025

A Trader’s Guide To Smarter Moves

July 6, 2025

Crypto Price Prediction Strategies – How Traders Forecast The Market

July 6, 2025

Causes, History, And How To Survive

July 6, 2025

A Guide To High-Risk, High-Reward Strategies

July 6, 2025

Ethereum MVRV has 1.20–1.25 and suggests that Market Peak is not visible.

July 6, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

GUNZ Announces $GUN Token Expansion To Solana

July 7, 2025

NEXST Launches Web3 VR Entertainment Platform With K-Pop Group UNIS As First Global Partner

July 7, 2025

Elon Musk announces that his “American Party” will accept Bitcoin and criticizes Trump’s financial bill.

July 7, 2025
Most Popular

5 Mistakes to Avoid When Selling Bitcoin Online

April 2, 2024

WebN Group and Laser Digital unveil Libre for asset tokenization

January 10, 2024

SingularityNET (AGIX) Updates on Progress of Decentralized AI Platform Development

September 26, 2024
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.