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South Korea prosecutors investigating lawmaker’s crypto accounts

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South Korean prosecutors are investigating cryptocurrency exchanges Upbit and Bithumb as part of an investigation into Rep. Kim Nam-guk’s transactions.

local media report The Seoul Southern District Public Prosecutor’s Office announced that it had seized account information from both exchanges to investigate Kim’s trading history and source of funds.

The prosecution also issued a warrant to the Kakao Messages app, accusing the senator of using ClipWallet for some cryptocurrency transactions.

The country’s main financial regulator reported Kim to prosecutors for acting on information from Upbit. The lawmaker had transferred 800,000 WEMIX tokens worth 6 billion won ($4.5 million) from Upbit to Bithumb from late February to early March 2022.

The revelation raised concerns about conflicts of interest, as Kim was a co-sponsor of the 2021 Income Tax Reform Bill. The bill aims to eliminate taxes on virtual assets.

The investigation has been ongoing since last year, but the court denied previous efforts to obtain search and seizure warrants. However, the prosecution won the case in the third attempt after strengthening the charges.

According to media reports, the prosecution sent a search and seizure warrant to the stock exchange, listing allegations of violation of the Political Funds Act, concealment of criminal proceeds, and tax evasion.

On the other hand, Kim, who was a member of South Korea’s largest opposition party, the Minjoo Party, left the party and became an independent party.

Since there are no rules requiring lawmakers to report cryptocurrency transactions, the lawmaker denies any violations of the law. WEMIX was delisted from major Korean exchanges in November 2022.

An article about South Korean prosecutors investigating a lawmaker’s cryptocurrency account first appeared on CryptoSlate.

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