Crypto related transactions have put a South Korean lawmaker under scrutiny, leading to potential disciplinary actions as an advisory panel of the country’s parliamentary ethics committee set a meeting for Monday. The allegations against the first-term legislator primarily focus on his participation in dubious crypto dealings.
It was revealed that Kim Nam-kuk possessed approximately 800,000 Wemix coins in 2021, valued at approximately 6 billion won ($4.5 million).
This substantial amount of wealth appeared incongruous with his reputation for being frugal, raising suspicions about the source of the funds and the possibility of insider trading.
The Southeast Asian country’s Ethics Investigation Advisory Committee has conducted three meetings in recent weeks to examine potential irregularities related to Kim’s significant crypto asset holdings.
The chair of the committee has expressed the panel’s intention to reach a final decision during its fourth meeting, which is scheduled to take place today.
South Korean Lawmaker’s Dubious Crypto Dealings Under Probe
According to The Korea Times (with Yonhap as its source), the questionable cryptocurrency transactions of Kim were brought to the attention of the Financial Services Commission’s Financial Intelligence Unit (FIU).
The unit categorized these withdrawals as suspicious transactions and subsequently reported them to the prosecution for further investigation.
In a related development, prosecutors conducted raids on two prominent cryptocurrency exchanges, Upbit and Bithumb, in May. These actions were part of the broader investigation into the escalating suspicions surrounding Kim’s involvement in cryptocurrency activities.
Bitcoin nearing the halfway mark to the $31K territory. Chart: TradingView.com
Adding to the mounting criticism of Kim, it was revealed that the young lawmaker had engaged in cryptocurrency trading while attending at least two meetings of the judiciary committee of the National Assembly in May and November of the previous year.
The advisory panel, composed of external experts, has the responsibility of deliberating on the appropriate level of disciplinary measures to be taken against lawmakers referred to the ethics committee.
Typically, the panel’s decision is endorsed by the committee, solidifying its significance in determining the course of action.
Party Departure And Questionable Coin Ownership
Kim also made headlines last month when he officially left the Democratic Party. This decision came in the wake of revelations regarding his ownership of a substantial number of cryptocurrency coins.
The disclosure raised concerns about the origin of the funds and whether Kim, as an independent lawmaker, had access to confidential information that could have influenced his cryptocurrency dealings.
Kim, however, refuted any wrongdoing, stating that he neither cashed out his tokens nor violated any laws.
According to the report, South Korea’s Public Service Ethics Act does not mandate the reporting of virtual assets, which may explain the absence of any legal requirement for Kim to disclose his holdings.
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