Authorities raid Upbit and Bithumb in connection with South Korean crypto scandal

Prosecutors conducted a raid on two prominent South Korean cryptocurrency exchanges, Upbit and Bithumb, as part of an ongoing investigation into allegations surrounding independent lawmaker Kim Nam-kuk’s digital assets.

The team of investigators from the Seoul Southern District Prosecutors Office seized transaction records and other materials from the exchanges, aiming to shed light on the growing suspicions surrounding the lawmaker’s involvement in the cryptocurrency market.

Under the gun

The controversy emerged when it was revealed that Kim possessed approximately $4.5 million worth of wemix coins in 2021, a fact that had previously been reported by several news outlets two years ago.

The lawmaker Kim Nam-kuk has since been implicated in allegations of cryptocurrency trading during his attendance at two judiciary committee meetings of the National Assembly. 

These meetings occurred in May and November of the previous year. As part of his digital asset operations, Kim is known to maintain his digital wallets with two prominent South Korean cryptocurrency exchanges, Upbit and Bithumb. 

The unfolding scandal surrounding lawmaker Kim Nam-kuk has prompted an internal investigation by the ruling political party following allegations that he engaged in cryptocurrency trading during parliamentary sessions.

These accusations have raised concerns about potential conflicts of interest and have cast a shadow over Kim’s credibility as a politician.

Adding to the controversy, it has been revealed that Kim voted in favor of regulatory legislation during his tenure that aimed to classify certain forms of gaming money as cryptocurrencies. This development raises questions about the lawmaker’s involvement in shaping cryptocurrency regulations and whether his actions were influenced by personal gain.

The ruling People Power Party has announced the establishment of an internal task force to investigate the cryptocurrency transfers by lawmaker Kim Nam-kuk.

Led by Rep. Yun Chang-hyeon, who heads the special committee on digital assets, the task force will also include Rep. Kim Sung-won as the party seeks to delve into the details of Kim’s cryptocurrency activities.

Implementing regulation

The timing of Kim’s crypto scandal is significant as South Korea is actively working on implementing regulations for cryptocurrencies.

The country has been exploring ways to effectively oversee the cryptocurrency market and ensure compliance with anti-money laundering and consumer protection measures.