I think that it is more than likely that they have some funds like crypto, but who is to say they don't just plan to make off with the money considering their banking ties seem very weak and the speculated amount of fiat they have isn't that much. I think wash trading is rampant, as far as we are mostly concerned with steem/sbd it seems that some of the Korean exchanges got raided recently and that could be very bad news if any one of them caught for insider trading/exchange employees trading with customer funds/exchanges that allow for money laundering against Korean money laundering laws turns out to be Upbit.

I'm going to lean towards them being one of the yet unnamed exchanges simply because they were probably the only major Korean exchange to not voluntarily join the self-regulation entity that was proposed and formed by the other exchanges there. Really wish there was an english-speaking Korean on steemit who was prominent and had the scoop on all of this considering how much it could impact all of us here.