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South Korean prosecutors have raided the offices of two local cryptocurrency exchanges in connection with investigations related to MP Kim Nam Kook’s digital assets.
According to a report by South Korean news agency Yonhap, a team of prosecutors from the Seoul Southern District Prosecutor’s Office raided the Upbit and Bithumb cryptocurrency exchanges in search of transaction records and other materials.
Kim is said to operate his digital asset wallets on Upbit and Bithumb.
The raid by the authorities followed immediately after Kim left his political party on 14 May. His departure is linked to several allegations against him for allegedly suspicious cryptocurrency transactions while he was working on digital asset legislation in May and November 2022.
According to the former MP’s Facebook post, he didn’t want to “burden” his fellow party members with controversies related to his cryptocurrency deals. In the same post, he also said that the accusatory media reports contained “false facts” and that he would “reveal the truth.”
Suspicious activity
A Korea Times report on May 8 reported that Kim had liquidated more than $4 million in crypto before the Financial Action Task Force enacted the “Travel Rule.” Kim is said to have backed a bill that would delay the introduction of a 20 percent capital gains tax on cryptocurrencies from 2023 to 2025.
Kim reportedly claimed that he did not cash out his digital assets, but transferred them to another exchange. The MP stated that he was not obliged to report on such activities.
In 2021, a South Korean politician owned an estimated 800,000 Wemix coins ($4.5 million), according to Yonhap reports.
disputes about cryptocurrency exchanges
Bithumb, one of the exchanges where Kim allegedly kept his funds, has been under close scrutiny by local regulators in recent months.
In December 2022, the chief executive of the exchange’s largest shareholder was found dead shortly after he received accusations of embezzlement and stock price manipulation. Less than a month later, Bithumb was under investigation by regulators, and on January 10, its offices were raided.
Related: ‘Banks will get even worse’ – JPMorgan CEO on over-regulation
On February 2, the owner of the exchange was arrested by South Korean authorities on charges of embezzlement and a warrant was issued for his arrest, which included additional charges of dereliction of duty, market manipulation and fraudulent transactions.
Repression in South Korea
All these events in South Korea are due to the fact that the country’s authorities are suppressing the activities of the local cryptocurrency.
On April 24, the Bank of Korea, the central bank of South Korea, received the authority to launch investigations into the operators of crypto-related businesses. As part of this new power, banks will be able to request access to cryptocurrency transaction data from exchanges operating in the country.
Two days later, lawmakers passed an initial review of proposals to regulate cryptocurrencies. These new rules include relatively harsh sentencing guidelines and empowering the Financial Services Commission to both investigate and monitor any activity involving “digital assets.”
Reading 3 min Views 6 Published Updated
South Korean prosecutors have raided the offices of two local cryptocurrency exchanges in connection with investigations related to MP Kim Nam Kook’s digital assets.
According to a report by South Korean news agency Yonhap, a team of prosecutors from the Seoul Southern District Prosecutor’s Office raided the Upbit and Bithumb cryptocurrency exchanges in search of transaction records and other materials.
Kim is said to operate his digital asset wallets on Upbit and Bithumb.
The raid by the authorities followed immediately after Kim left his political party on 14 May. His departure is linked to several allegations against him for allegedly suspicious cryptocurrency transactions while he was working on digital asset legislation in May and November 2022.
According to the former MP’s Facebook post, he didn’t want to “burden” his fellow party members with controversies related to his cryptocurrency deals. In the same post, he also said that the accusatory media reports contained “false facts” and that he would “reveal the truth.”
Suspicious activity
A Korea Times report on May 8 reported that Kim had liquidated more than $4 million in crypto before the Financial Action Task Force enacted the “Travel Rule.” Kim is said to have backed a bill that would delay the introduction of a 20 percent capital gains tax on cryptocurrencies from 2023 to 2025.
Kim reportedly claimed that he did not cash out his digital assets, but transferred them to another exchange. The MP stated that he was not obliged to report on such activities.
In 2021, a South Korean politician owned an estimated 800,000 Wemix coins ($4.5 million), according to Yonhap reports.
disputes about cryptocurrency exchanges
Bithumb, one of the exchanges where Kim allegedly kept his funds, has been under close scrutiny by local regulators in recent months.
In December 2022, the chief executive of the exchange’s largest shareholder was found dead shortly after he received accusations of embezzlement and stock price manipulation. Less than a month later, Bithumb was under investigation by regulators, and on January 10, its offices were raided.
Related: ‘Banks will get even worse’ – JPMorgan CEO on over-regulation
On February 2, the owner of the exchange was arrested by South Korean authorities on charges of embezzlement and a warrant was issued for his arrest, which included additional charges of dereliction of duty, market manipulation and fraudulent transactions.
Repression in South Korea
All these events in South Korea are due to the fact that the country’s authorities are suppressing the activities of the local cryptocurrency.
On April 24, the Bank of Korea, the central bank of South Korea, received the authority to launch investigations into the operators of crypto-related businesses. As part of this new power, banks will be able to request access to cryptocurrency transaction data from exchanges operating in the country.
Two days later, lawmakers passed an initial review of proposals to regulate cryptocurrencies. These new rules include relatively harsh sentencing guidelines and empowering the Financial Services Commission to both investigate and monitor any activity involving “digital assets.”
