UPbit, the largest cryptocurrency exchange in South Korea, has been cleared of accusations that the exchange was inflating its balance sheets and trading volume. The news comes as a relief to investors who were concerned following the news that South Korean authorities raided UPbit’s offices on May 11th due to suspicious activity.

According to several reports, South Korea’s main financial watchdog, the Financial Services Commission (FSC) conducted a joint operation with the Korea Financial Intelligence Unit (KFIU) to secure hard drives and accounting data from the exchange. The raid came as a result from claims from unknown sources that the exchange was insolvent.

Following the exchange, which sent ripples through the cryptocurrency markets, UPbit hired the largest accounting firm in South Korea, Yoojin, to validate their cryptocurrency holdings and balance sheet. On May 15th, the accounting firm officially cleared UPbit of all accusations, claiming that Upbit’s holdings matched the amount of user funds on its balance sheet.

Local South Korean news outlets covered the audit results, saying:

“Since early 2018, UPbit created snapshots of its multi-signature wallets and funds stored within them for auditing purposes. Yoojin accounting firm, a major accounting firm based in Seoul, confirmed that all of the funds on the UPbit platform match the cryptocurrency holdings of UPbit stored in its multi-signature wallets,”

Despite the Yoojin audit, the South Korean government did not comment on the investigation. On August 4th, however, Dunamoo, a subsidiary of internet giant Kakao, released a report confirming the claims made in the Yoojin report.

Dunamoo’s president, Lee Seok-woo, said in a statement:

“UPbit currently has the exact amount of money held by the platform’s investors along with additional funds, more than enough to compensate every investor. Hence, UPbit is able to process withdrawals for customers upon the request of its customers and the exchange will continue to release audit reports on a regular basis to prove its solvency."

This report, in conjunction with the Yoojin report, conclusively clears UPbit of accusations of malpractice, although the effects of this report have not been reflected in the cryptocurrency markets, with Bitcoin hovering around $7,000 from its recent highs of $8,500.