Cryptocurrencies are getting slammed after a raid at South Korea’s largest exchange

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Markets Insider

LONDON – Cryptocurrencies are getting slammed Friday after investors were spooked by news that South Korea’s largest crypto exchange has been raided by prosecutors.

Here’s the scoreboard as of 1:35 p.m. BST (8:35 a.m. ET):

The slump comes amid negative headlines in the crypto space. 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 criticized 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.