• Press Releases
    • Submit a press release
    • Read All
  • Contact us
Advertise
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Breaking News: Crypto Market Structure Bill: Senate Sources Indicate Draft Release As Soon As Tomorrow
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Bitcoinist.com
No Result
View All Result
Breaking News: Crypto Market Structure Bill: Senate Sources Indicate Draft Release As Soon As Tomorrow
upbit to freeze crypto accounts

Upbit Continues to Freeze Crypto Withdrawals For Foreign Users

Ricardo Martinez
by Ricardo Martinez
5 years ago
·
Posted in News, News teaser
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

South Korean crypto exchange, Upbit, started to block withdrawals for its foreign users back in December 2019. Initially it was thought to be in response to the hack that took place, but now it seems it may have something to do with the company’s outstanding tax fine.


Was the Upbit hack worse than initially reported?

Over 6300 Chinese crypto traders have been prevented from withdrawing their funds held on Upbit since December when initial reports started coming in. The month prior, on November 27th, Upbit was hacked for 342,000 ETH.

Many Chinese investors assumed that Upbit froze withdrawals while the hack was being investigated. As new information comes to light, however, this may not be the case at all. Now it seems that Korean customers have been able to withdraw funds again, while foreign customers have not.

Foreign investors have speculated that perhaps the Upbit hack was actually much worse than reported.

The account freeze may actually have to do more with fellow S. Korean exchange Bithumb’s recent $70 million dollar tax fine from S. Korea’s tax collection agency. Victims have speculated that their funds may have been used to pay taxes to avoid a Bithumb style “tax bomb”.

Another factor, might be an Upbit executive’s recent prison sentence for fraud. Song, an Upbit Senior Executive, and a gang of accomplices used fake IDs to simulate 122 billion Korean Won worth of trading volume on the exchange.

The whole situation for now is still unknown, as Upbit has failed to respond to inquiries regarding the circumstances of the frozen funds.

Upbit has told foreign traders that they are implementing “stronger AML/KYC” for FATF compliance, and that customers who have already completed AML/KYC, can no longer withdraw funds in Korean Won.

Foreign account holders may have to wait for an official decision from S. Korean tax authorities on whether or not they will be granted access to their funds again. This could take a long time.

Foreign account holders are having a hard time mounting a defense

Since Korean Upbit customers can still use the exchange without the same restrictions as foreign account holders, it is possible that Upbit is being forced to comply with new regulatory burdens, as they have stated.

Foreign account holders have formed into several groups to try to collectively demand their funds back from Upbit, although it is difficult since they are scattered and are having trouble organizing a coherent response.

Victims state that immediately after the hack they were asked to resubmit all AML/KYC information, which many had already submitted as early as 2017. The documents demanded were ID, Domestic proof of residence, Alien fact of landing certificate, and Alien landing certificate.

As common with many AML/KYC account freeze scams from insolvent exchanges, they required the documents a second time under the excuse of “customer safety”.

Customers with frozen accounts, who had already provided the information, and are stuck without their money, are wondering how they are any safer?

Did the Upbit hack, S. Korea’s new tax burdens for crypto exchanges, and fraudulent trading by a Senior Executive create a perfect storm to leave one of S. Korea’s largest exchanges insolvent? Only time will tell.

Do you think Upbit will give investors their money back? Let us know in the comments!


Images via Shutterstock, Twitter

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Ricardo Martinez

Ricardo Martinez

Follow

Full Profile

Related Posts

Nvidia

Nvidia впервые достигла капитализации $5 трлн на фоне роста спроса на ИИ

2 hours ago
Bitcoin Hyper

Докато Биткойн се търгува на $113K, Bitcoin Hyper събира над $25.2M, за да реши основните му проблеми

9 hours ago
Bitcoin

Bitcoin Beats The Euro — France Chooses Crypto Over CBDC

15 hours ago
Visa

Visa Opens The Floodgates — Stablecoin Payments To Span 4 Blockchains

23 hours ago
Solana

Новый этап для Solana и других альткоинов: в США запущены первые спотовые ETF

1 day ago
меме койни

Най-добрите меме монети за покупка с дебюта на Bitwise Solana ETF с печалби от $69.5M

1 day ago
Please login to join discussion

Premium Sponsors

Press Releases

  • Is Staking Crypto Worth It? XRP Tundra Presale Offers 12% APY

    Is Staking Crypto Worth It? XRP Tundra Presale Offers 12%...

    8 hours ago
  • Crypto Predictions Favor Tundra as XRP Ecosystem Catalyst

    Crypto Predictions Favor Tundra as XRP Ecosystem Catalyst

    9 hours ago
  • Bitcoin Hyper

    Докато Биткойн се търгува на $113K...

    10 hours ago
  • weex-welcome-promo-800-usdt-tested-for-beginners-tw

    新手別錯過:測試了WEEX迎新活動 領到800...

    10 hours ago
  • Deleion Capital Launches Mobile App for Passive Crypto Earning for Diversified & Profitable Investments

    Deleion Capital Launches Mobile App for Passive Crypto...

    14 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

About Us

  • Advertise
  • Contact us
  • Editorial Policy
  • Privacy Policy
© 2025 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
      • Crypto Betting
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Advertise

© 2025 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.