The recent flash crash in Bitcoin and most other currencies could have been caused by the recent raid in two of the biggest South Korean exchanges this week. Yesterday and article on Reuters explained what had happened and had some quotes by the officials.
"A few officials from the National Tax Service raided our office this week,"
an official at Coinone. The exchange is one of the biggest ones in South Korea with a massive volume which trades these coins:
nonetheless many other currencies are affected in a flash crash as well since most are dependent on Bitcoin because they are primarly traded with it.
"Local police also have been investigating our company since last year, they think what we do is gambling,"
added the official of Coinone and said that they have been cooperating with the investigation of the tax agencies and police.
"We were asked by the tax officials to disclose paperwork and things yesterday,"
said an anonymous official from Bithumb which was also raided. Bithumb is the largest South Korean exchange and offers these coins, note that the volume is probably a lot lower now after these activities and the screenshots are fresh as of writing this article.
Authorities had recently stated that they are investigating 6 banks that offer virtual currency accounts to these institutions as they are concerned the use of these currencies will increase crime. The gambling aspect is also a major concern as many are drawn to trading now after Bitcoin's huge surge last year as cryptocurrency trading just keeps on growing in volumes.