Upbit Restricts Withdrawals from 6 Companies Suspected of Virtual Asset Ponzi Scam

As cases of multi-level financial fraud (Ponzi scheme) using virtual assets are spreading, Upbit has implemented withdrawal restriction measures to prevent investor damage.

On the 20th, Dunamu, the operator of Upbit, announced that it will restrict the withdrawal of virtual assets to Ponzi scheme-suspected businesses based on Article 17, Paragraph 6 of the Enforcement Decree of the Act on the Use of Virtual Assets. The Ponzi scheme-suspected businesses disclosed by Upbit are Quantvine, ASIGPT, Hardwood Mining, TsVertex, AI ROBOT, and Dataminr.



Ponzi schemes pay interest or dividends to existing investors using funds from new investors. These companies promise high returns to investors, but in most cases, they disappear after using the investment funds.

Among them, Quantvine had its withdrawal address registration restricted on Upbit since April 4th. After Upbit's restriction measure, several domestic exchanges also blocked deposits and withdrawals to Quantvine-related wallet addresses, warning investors. According to the industry, Quantvine has closed its website and disappeared. The financial authorities are also aware of the case and have reportedly launched an investigation.

An Upbit official said, "Upbit plans to take strong legal action against confirmed illegal solicitation and Ponzi schemes in accordance with the Act on the Regulation of Conducting Fund-Raising Business without Permission." The official added, "We will continue to do our best to provide a transparent and healthy trading environment."

Meanwhile, Upbit is operating a reporting channel for Ponzi scheme-suspected businesses. Users can report multi-level businesses and poor users through the '1:1 inquiry' tab in the Upbit (web/app) customer center.

Yeri Do, Reporter

yeri.do@sedaily.com