Four South Korean Cryptocurrency Exchanges are Assisting Local Government in New Case

Four cryptocurrency exchanges, the most major ones in South Korea, will be helping out the government in a case, reports Chain News.

These four exchanges are Bithumb, Korbit, Coinone, and Upbit. This is regarding what is called the “room N” incident.

Apparently, the Room N incident involves a chat group of illegal videos that profits off of membership fees. Those participating in the membership fees could be anyone from famous sports stars to artists to professors, the site reports.

According to Sina, Zhao Zhubin, of the Doctor Room affiliation, had made over 3.3 billion won via doing so. Interestingly, the South Korean police force informed the above four exchanges of the issue, which is why they’re attempting to assist.

Reportedly, 3.2 billion of that won has not been converted into cash, and it is more than likely these funds are in cryptocurrency, which is why the help of the exchanges is necessary. However, it will be difficult to track this stuff down, as chats within the private service self-destruct and encrypt themselves, so we’ll have to see what the groups can come up with.

Recently, Bithumb partnered with Chainalysis to further increase the verification of transactions across cryptocurrency networks and exchanges, as InsideBitcoins has previously reported.