- Cryptocurrencies fell in Friday trade, with the worst hit down 16%.
- Sentiment has suffered after news that South Korean prosecutors have raided the country’s biggest exchange.
- Follow live cryptocurrency prices on Markets Insider.
Cryptocurrencies are getting slammed Friday after investors were spooked by news that South Korea’s largest crypto exchange has been raided by prosecutors.
Bitcoin was down more than 7% to $US8,419 while Ethereum was down almost 9% to $US674 as of 7.20am Saturday morning AEDT.
The slump comes after South Korean news agency Yonhap said prosecutors raided the country’s biggest cryptocurrency exchange, Upbit, on Thursday and Friday on suspicion of fraud. Upbit is the largest market for cryptocurrency EOS, accounting for 13% of all trade according to FXStreet, and EOS dropped 16% on Friday in response.
Separately on Friday, graphics chipmaker Nvidia, whose chips are used in cryptocurrency mining, told investors it expects cryptocurrency-related revenues to shrink by as much as two-thirds going forward as the recent crypto boom cools.
A number of high profile investors and economists have criticised cryptocurrencies in recent weeks. Economist Nouriel Roubini called bitcoin “bulls—,” Warren Buffett likened bitcoin to “rat poison,” and Bill Gates has said he would like to short bitcoin.
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