On the evening of September 2nd, the cryptocurrency market suddenly fell collectively, and mainstream currencies such as BTC and ETH suffered the biggest decline in nearly half a month. BTC fell below $11,300, with a maximum drop of 5%. ETH once fell below $420, a drop of 8%.
The contract market also suffered heavy losses. According to the data of the contract emperor, in the one hour of the plunge, the entire network had a total of US$455 million in liquidation, 37,544 people had liquidated positions, and the entire network had liquidated US$601 million in 24 hours.
The reason for the plunge may be related to the sudden change in the Korean cryptocurrency market
With a relatively loose regulatory environment, South Korea has gradually occupied a place in the cryptocurrency trading market in the past two years, and has become one of the most important cryptocurrency markets in the world. There are many well-known cryptocurrency exchanges in its territory.
South Korea's Seoul Metropolitan Police Department raided and seized South Korea's largest cryptocurrency exchange Bithumb on the grounds of suspected fraud. According to data, Bithumb's 24-hour trading volume was around US$350 million.
The oldest newspaper in South Korea, "Seoul Shinmun", reported the news on Wednesday, saying that Bithumb's office had been raided by the police. According to reports, the exchange was accused of pre-selling local BXA tokens worth about US$25 million to investors, but failed to list the tokens, which allegedly caused investors to suffer serious losses.
It is said that Bithumb has issued BXA tokens in the past, and then it is rumored that it will be acquired by Singapore-based BK Group. However, it was reported that the acquisition transaction did not materialize.
Not only Bithumb, but other cryptocurrency exchanges in South Korea seem to be having trouble recently. Last week, the Seoul Metropolitan Police Department also seized the Coinbit Exchange, claiming that it allegedly inflated its trading volume by 99%, thereby bringing the exchange and its team at least $84 million in "improper profits."
