Upbit Takes Steps to Block Ponzi Schemes... "Restricting Withdrawals to Suspicious Companies"

Dunamu, the operator of domestic virtual asset (cryptocurrency) exchange Upbit, announced on the 20th that it will restrict virtual asset withdrawals to businesses suspected of Ponzi schemes in accordance with Article 17, Clause 6 of the Enforcement Decree of the Virtual Asset User Protection Act.

A Ponzi scheme is a multi-level financial fraud that pays returns to existing investors using funds from new investors. These companies often attract investments by promising "guaranteed high returns," then repeatedly cycle funds until resources are depleted, at which point they disappear.

Upbit has strengthened its "withdrawal address registration restriction" measures against related businesses as reports of suspected Ponzi schemes using virtual assets have increased recently. Currently, businesses suspected of Ponzi schemes that Upbit has disclosed include ▲Quantvine ▲ASIGPT ▲Hardwood Mining ▲TS Vertex ▲AI ROBOT ▲Dataminr.

In particular, Quantvine has been blocked from registering withdrawal addresses on Upbit since the 4th. According to industry sources, Quantvine has closed its website and disappeared. Financial authorities are also reportedly aware of the fraud allegations against the company and have launched an investigation.

An Upbit representative said, "Upbit plans to take strong measures, including legal action, against illegal similar receiving activities and Ponzi schemes in accordance with the 'Act on the Regulation of Similar Receiving Activities,'" adding, "We will continue to do our best to create a transparent and sound trading environment."