South Korean lawmaker under investigation for suspicious crypto transactions

Kim Nam-Kuk, a South Korean lawmaker, is under investigation after claims that he withdrew 800,000 WEMIX tokens during questionable crypto transactions.

A series of cryptocurrency transactions by a legislator from an opposition party has been submitted to local prosecutors by South Korea’s financial watchdog. According to reports by local media, Kim reportedly owned 800,000 Wemix coins, a cryptocurrency used by online game developer Wemade, worth $4.5 million in early 2022.

Between January and February 2022, Kim transferred Wemix coins to his cryptocurrency account, then from late February to early March of that same year, he abruptly withdrew all of his assets.

The transactions were notified to the Financial Intelligence Unit (FIU). According to the report, the FIU identified the withdrawals as suspicious transactions and submitted them to the prosecutor’s office.

The FIU of the Financial Services Commission of South Korea has informed the local prosecutors of several cryptocurrency transactions made by Rep. Kim Nam-kuk of the opposition party.

WEMIX delisting and taxation amendment supported by Kim

Kim has denied breaching any laws by cashing out his tokens. The Public Service Ethics Act does not require disclosing virtual asset holdings in South Korea. However, WEMIX was delisted from the country’s most essential exchanges the year before for allegedly providing false information on supply and circulation.

The report stated that Kim was a co-sponsor of an amendment to the Income Tax Act in July 2021 that included a clause delaying the taxation of digital assets. Plans to tax cryptocurrency income and income from the “transfer or lending” of virtual assets in South Korea have been postponed until 2025.