May 16, 2023 12:25
In an ongoing investigation
into the cryptocurrency holdings of independent lawmaker Kim Nam-kuk, South
Korean prosecutors conducted raids on two local cryptocurrency exchanges on
Monday, according to officials. The Seoul Southern District Prosecutors Office
dispatched a team of investigators who seized transaction records as well as
other relevant materials from both Upbit and Bithumb.
The investigation stems from mounting
suspicions surrounding Rep. Kim's digital assets. Recent revelations indicate that he
possessed approximately 800,000 Wemix coins in 2021, valued at around 6 billion
won (US$4.5 million). Questions have arisen regarding the source of the funds
and whether Rep. Kim had access to insider information.
In addition to the questions
surrounding his cryptocurrency holdings, the first-term lawmaker, who recently
resigned from the main opposition Democratic Party, faces allegations of
engaging in cryptocurrency trading during his attendance at two meetings of the
National Assembly's judiciary committee. These meetings took place in May and
November of the preceding year.
Rep. Kim maintains his digital
wallets with Upbit and Bithumb, the two cryptocurrency exchanges subject to the
recent raids, as the Seoul Southern District Prosecutors Office aims to gather
further evidence and shed light on the circumstances surrounding the lawmaker's
digital asset transactions.
The raids on these
cryptocurrency exchanges mark a significant development in the ongoing
investigation, as authorities seek to ascertain the origins of Rep. Kim
Nam-kuk's substantial cryptocurrency holdings and determine whether any illicit
activities or breaches of trust occurred.
Wemix, the popular blockchain-based game platform, has since issued a statement.
"Reports to the effect that WeMade illegally supported Wemix or provided internal information related to investment to members of the National Assembly are completely untrue," WEMIX said in a statement in Korean (as translated by Google).
PPP to Launch Internal Task
Force
Meanwhile, the ruling People Power Party (PPP) announced on Monday its intention to
establish an internal task force dedicated to investigating suspicions
surrounding the cryptocurrency transactions of opposition lawmaker Kim Nam-kuk.
On Sunday, Kim resigned from
the Democratic Party, stating his desire not to burden the party. Consequently,
the party's fact-finding investigation into Kim and an ethics inquiry were
suspended.
In response, the PPP has
decided to form a special task force, set to commence its activities on
Tuesday. The task force will comprise approximately 10 members, including PPP
lawmakers and external experts possessing specialized knowledge of digital
assets.
The establishment of the
internal task force by the People Power Party demonstrates the seriousness with
which they regard the allegations surrounding Kim Nam-kuk's cryptocurrency
activities.
Leading the investigation team
will be Rep. Kim Sung-won and Rep. Yun Chang-Hyeon, the latter of whom also heads
the special committee on digital assets. This initiative underscores the PPP's
commitment to taking independent action following Kim's departure. The party
argues that the Democratic Party's investigation would be insufficient, as it
lacks the authority to conduct a thorough inquiry into an independent lawmaker.
Kim has consistently maintained
his innocence, vowing to challenge numerous news reports that he asserts were
based on false information. Furthermore, the task force will also investigate
potential lobbying efforts by the gaming industry regarding play-to-earn (P2E)
coins, aiming to shed light on any improprieties in this regard.
The findings of the task force
have the potential to significantly influence public perception, political
dynamics, and future regulations concerning digital assets in South Korea.
Implications for the Crypto Industry in South Korea
As the investigation
progresses, it is expected to further impact the political landscape and
contribute to ongoing discussions regarding the regulatory framework
surrounding digital assets.
Investors and the general
public in South Korea are closely following this case, as it sheds light on the
regulatory environment surrounding digital assets and highlights potential
vulnerabilities within the political system.
The investigation is expected
to proceed with a thorough examination of the seized materials, including
transaction records and any other pertinent evidence. Prosecutors will aim to
establish a clear understanding of the sources and nature of Rep. Kim's
cryptocurrency holdings, while also examining whether any legal or ethical
boundaries were crossed in the process.
As the investigation unfolds,
it is likely to have wider implications for the cryptocurrency industry in
South Korea. Regulators may review existing frameworks and enact measures to
enhance transparency and prevent potential abuse or conflicts of interest
within the political sphere.
The cryptocurrency community,
along with market participants and lawmakers, should closely observe the progress
of the investigation, as its outcome could influence future regulations and
practices surrounding digital assets in South Korea.
This article was written by Pedro Ferreira at www.financemagnates.com.
World Crypto Global
