Raising source questions
[BlockMedia = by James Jung] BlockMedia has found a significant inflow of Sui coins, a prominent cryptocurrency known for its high market value and widespread use, into Upbit, a leading South Korean cryptocurrency exchange. The probe traced the deposits to a specific wallet address, raising questions about the source of the funds.
On June 10th, the questionable wallet address was (0x870afb9e6db12c5e2409fcb04c080046ea3697df5106525439bd75f1c6081203); All rights linked to a high volume of Sui coin transfers to Upbit. The activity began on May 4, 2023, coinciding with Upbit’s listing of Sui.
Over 2,800 transactions have occurred involving this wallet, transferring Sui coins into Upbit’s internal wallets. The cumulative deposit amount is estimated to exceed 95 million Sui coins, valued between 170 billion and 180 billion Korean won (approximately $135 million to $144 million).
The investigation is still unfolding, and it has been revealed that the wallet received Sui coins from major cryptocurrency exchanges like Binance, OKX, and Bithumb before being transferred to Upbit. Notably, the wallet remains active, with a recent transfer of 59,339 Sui coins from Binance on June 10th at 6:33 AM KST, adding to the intrigue of this unfolding story.
Upbit acknowledged the wallet’s existence but clarified that it was not associated with the Sui Foundation, a non-profit organization overseeing the Sui blockchain. “Based on our internal data, this appears to be a transfer compliant with Travel Rule regulations,” an Upbit spokesperson explained. The Travel Rule, a set of regulations designed to prevent money laundering and terrorist financing, mandates that cryptocurrency exchanges collect and share user data during transactions, making it a crucial aspect of this investigation.
BlockMedia contacted the Sui Foundation and Sui blockchain developer Mysten Labs for comments regarding the wallet and transactions, but no response was received by the time of publication. This lack of response could be due to the ongoing nature of the investigation or the entities’ reluctance to comment on the matter.
The influx of Sui coins into Upbit is under intense scrutiny after the cryptocurrency was flagged in a National Assembly audit last year. The audit raised serious concerns about potential mismanagement in Sui’s distribution process, which could have far-reaching implications.
