Between March 12 and March 14, officials with the Seoul Southern District Prosecutors' Office reportedly conducted searches at three South Korean cryptocurrency exchanges.
Personnel with the trading platforms are apparently suspected of having embezzled customer funds, then using them to buy cryptocurrency on other exchanges.
A prosecutor with the Seoul office related that the "firms turned up on our radar in January during our investigation of suspicious money transfers between Bitcoin exchanges that were detected during an audit by the Financial Services Commission and the Korea Financial Intelligence Unit."
Investigators confiscated hard drives, cell phones, and documents from the three exchanges.
The prosecutors involved in the case are also expected to probe whether the exchanges tried to cheat investors.
Translations by the author of the hyperlinked article.