Opposition, Kim Nam-guk's '6 Billion Coin Suspicion' Controversy... Prosecutors Tracking Accounts

Suspicion of Withdrawal of Up to 6 Billion Won Worth of 800,000 Coins
Kim Nam-guk to Release Statement That Day
Prosecutors Investigating Possible Illegal Activities

The Democratic Party of Korea is facing repeated criticism, following the 'money envelope suspicion' with a new controversy over 'holding 6 billion won worth of coins.' While the Democratic Party acknowledges the problematic situation, it has yet to present an official response direction. Prosecutors have launched an investigation into allegations that Democratic Party lawmaker Kim Nam-guk withdrew virtual assets worth 6 billion won, but Kim denied the claims, stating, "There was no behavior that could be problematic."

According to political circles on the 8th, Kim Nam-guk's office is analyzing all transaction details and plans to hold a press conference to explain once the analysis is complete. Kim is expected to release an official statement regarding the virtual asset transaction allegations within the day.

Earlier, on the 5th, a media report stated that Kim withdrew all 800,000 WEMIX coins between February and March last year. At that time, the value of the WEMIX coins he held was reported to have peaked at around 6 billion won.

Following the report, Kim took to Facebook to strongly refute the allegations, saying, "I will stake my political life and all my assets." On the 6th, he said, "If the Financial Intelligence Unit (FIU) and investigative agencies had checked all the reported details and supporting documents from the exchange, they would have known that there was no problematic transaction," and criticized the prosecution's investigation as "a clear abuse of investigative authority and an illegal and excessive investigation."

Regarding criticisms that co-sponsoring the Democratic Party's virtual asset tax deferral bill constitutes a conflict of interest for a lawmaker, Kim countered the previous day, stating, "There is a problem of excessive restriction on the legislative rights held by lawmakers, and therefore, the Conflict of Interest Prevention Act stipulates that the process of enacting, amending, or repealing laws is an exception."

The party leadership held a closed-door discussion again on the same day but has yet to respond, stating it is still at the stage of "sharing and communicating the situation."

In response, the ruling party launched a full-scale offensive, calling it 'double standards.' Yoo Sang-beom, chief spokesperson for the People Power Party, said in a statement on the same day, "The public is speechless at the hypocrisy of Kim, who owns coins worth 6 billion won while wearing cheap sneakers and begging for donations, pretending to be a weak person." He added, "It is unacceptable to evade the source of funds by saying he traded coins since his days as a lawyer." The People Power Party leadership is considering filing a complaint against Kim with the National Assembly Ethics Committee as early as today.

[Image source=Yonhap News]

Meanwhile, prosecutors are conducting an investigation into Kim's suspicious cryptocurrency transactions. The Seoul Southern District Prosecutors' Office received Kim's cryptocurrency transaction records from the Financial Intelligence Unit (FIU) last year and is examining whether any illegal activities occurred. The FIU reportedly identified that Kim withdrew all approximately 800,000 WEMIX coins he held in early last year, classified this as suspicious activity, and notified the prosecution.

Typically, when the FIU detects suspicious transactions, it reviews the relevant financial accounts and transaction details. If it deems an investigation necessary, it notifies the Anti-Corruption Division of the Supreme Prosecutors' Office. The Anti-Corruption Division then either conducts a preliminary investigation or immediately assigns the case to a local prosecutor's office for review and instructions.

The local prosecutor's office receiving the case may close the investigation without filing charges if no abnormalities are found after preliminary inquiries. However, if confirmation of suspicious transactions is needed during the preliminary stage, the court is requested to issue warrants for financial account details, emails, and communications. Since the financial account details obtained by the FIU cannot be used as evidence in investigations, prosecutors must obtain warrants to verify additional account details. However, suspects are not classified during the preliminary investigation stage.

Although prosecutors requested a warrant to trace Kim's accounts based on FIU data, the court's dismissal of the request appears to have been a preliminary step to confirm suspicious transactions during the preliminary investigation. However, if suspicious transactions are confirmed after the preliminary investigation, the case may shift to a formal investigation, potentially involving forced measures such as searches of residences.

Given that this case involves a politically sensitive opposition lawmaker, prosecutors are taking great care to maintain confidentiality. Especially since Kim himself claims, "I believe this is a product of the 'Han Dong-hoon prosecution' under the Yoon Seok-yeol line," the prosecution has repeatedly emphasized that the news is not from them and is cautious in responding to false reports. Nevertheless, considering the importance of the matter, an official statement on the investigation is expected soon.

This content was produced with the assistance of AI translation services.