Prosecution Reviews Bribery and Public Official Ethics Act Application in 'Kim Nam-guk Coin Suspicion' Case

The prosecution investigating the allegations of large-scale cryptocurrency holdings by independent lawmaker Kim Nam-guk (41) plans to look into charges of bribery and violations of the Public Official Ethics Act against him.

Independent lawmaker Kim Nam-guk, who left the Democratic Party of Korea amid controversy over virtual asset (cryptocurrency) trading, is leaving his office at the National Assembly on the 31st. Photo by Kim Hyun-min kimhyun81@

On the 22nd, a representative from the Seoul Southern District Prosecutors' Office told reporters that they are also considering applying charges of violation of the Public Official Ethics Act and bribery against Kim. The prosecution official added, "All raised suspicions and charges are subject to review." The allegations related to Kim surfaced after the Financial Intelligence Unit (FIU) notified that Kim's transfer of WEMIX coins worth about 6 billion won (approximately 800,000 coins) in January-February last year was judged as suspicious transactions. It is reported that Kim withdrew these coins before March 25 of last year, when the so-called 'Travel Rule,' known as the 'real-name system for coins,' was implemented.

As suspicions against Kim become more concrete, the prosecution is expected to apply related charges. There are suspicions that Kim violated the Public Official Ethics Act by buying coins just before the asset declaration deadline of December 31 in 2021 and last year, and then selling them in January of the following year. It is suspected that he tried to evade asset registration by holding coins that were not subject to declaration on the deadline.

There are also allegations that Kim invested based on prior knowledge of the listing information of junk coins such as Mekong Coin and Mavrex Coin. The Mavrex Coin and Mekong Coin, which Kim purchased just before their listings, experienced a sharp price increase compared to the time of purchase. A prosecution official said, "It is true that Kim concentrated his investments in Mekong Coin and Mavrex Coin before their listings," adding, "Whether he realized capital gains by buying before the listing is a matter to be examined." The official further suggested the possibility of applying bribery charges, stating, "Since undisclosed information also provided investment opportunities, it could be considered bribery even if it is not in physical form."

The prosecution filed arrest warrants for 10 people who also heavily purchased these two coins around the same time as Kim, but the court dismissed them. The prosecution official explained the reason for the filing, saying, "Only Kim was found to have purchased before the listing, but we thought it necessary to look into questions arising about what the others who bought at the same time were doing."

Meanwhile, the prosecution continues to freeze criminal proceeds related to Ra Deok-yeon, CEO of Hoan (42), who is accused of manipulating stock prices in the 'SG Securities Stock Price Crash Incident.' The prosecution announced that they have confiscated and preserved assets worth about 21.4 billion won, an increase of 900 million won from the previous announcement, including lease refund payments for Lamborghinis and Benz vehicles registered under corporate names.

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