Prosecutors Launch Investigation into 'Kim Nam-guk Coin Allegations'

Assemblyman Kim's Early Last Year WEMIX Coin Transfer from Bithumb to Upbit
Citizen Groups File Consecutive Complaints

On the 15th, the prosecution conducted a search and seizure of the cryptocurrency exchanges Bithumb and Upbit in connection with the controversy over independent lawmaker Kim Nam-guk's (41) cryptocurrency holdings.

According to a Yonhap News report on the 15th, the Criminal Division 6 of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Lee Jun-dong) sent prosecutors and investigators to Bithumb and Upbit to secure transaction details of Kim's cryptocurrency trades. Previously, the prosecution had requested search warrants for Kim's electronic wallets twice in October and November last year, but these were dismissed.

Bithumb and Upbit are the exchanges where Kim's cryptocurrency electronic wallets are registered. Between January and February last year, Kim transferred 850,000 WEMIX coins from Bithumb to his Upbit electronic wallet. The Financial Intelligence Unit (FIU) at the time regarded the large cryptocurrency transfer as a suspicious transaction and handed over related materials to the prosecution.

Representative Kim Nam-guk is arriving at his office in the National Assembly on the morning of the 14th. After arriving at work, Representative Kim announced his departure from the Democratic Party of Korea through Facebook.
[Image source=Yonhap News]

Kim became the center of controversy after reports on the 5th stated that he held up to 6 billion KRW worth of WEMIX coins, a type of cryptocurrency, and withdrew them between late February and early March, just before the implementation of the real-name system for cryptocurrency trading. He explained, "There was no illegality in the process of holding and trading cryptocurrencies, and the property declaration was also completed lawfully," but the controversy did not subside easily. Ultimately, on the 14th, he abruptly announced his departure from the Democratic Party, becoming an independent lawmaker.

With Kim's departure, it seems unlikely that any investigation or ethical supervision by the Democratic Party will be effective. However, since civic groups and the ruling party have filed complaints against Kim with the police and prosecution, he cannot avoid investigation. The civic group Seomin Minsaeng Countermeasures Committee filed a complaint against Kim on the 9th with the police for violations of the Real Name Financial Transactions Act, defamation, and fraud. Subsequently, on the morning of the 15th, Lee Jong-bae, a member of the Seoul Metropolitan Council from the People Power Party, filed a complaint with the Supreme Prosecutors' Office against Kim for violations of the Political Funds Act, Capital Markets Act, bribery, and other charges. The case was assigned to the Seoul Southern District Prosecutors' Office.

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