South Korean prosecutors are investigating crypto exchanges UpBit and Bithumb as part of the investigation into lawmaker Kim Nam-kuk’s transactions.
Local media reported that the Seoul South District Prosecutor’s Office seized Kim’s account information from the two exchanges to check his transaction history and funding source.
Prosecutors also sent a warrant to the Kakao messaging app because the legislator used his Klip wallet for some crypto transactions.
The country’s top financial regulator reported Kim to prosecutors after she acted on information from Upbit. The legislature had transferred 800,000 WEMIX tokens worth 6 billion won ($4.5 million) from Upbit to Bithumb between late February and early March 2022.
The revelation raised concerns about conflict of interest, as Kim co-sponsored a bill to amend the 2021 income tax law. The bill was designed to abolish taxes on virtual assets.
While the investigation has been ongoing since last year, the court denied previous attempts to get the search and seizure warrants. But the prosecution was successful on its third attempt after strengthening its charges.
According to reports, prosecutors cited charges such as violating the Political Funds Act, concealment of criminal proceeds and tax evasion in the search and seizure warrants sent to the exchanges.
Meanwhile, Kim, who was a member of South Korea’s main opposition party, the Democratic Party, has resigned from the party to become independent.
The legislator has denied breaking any law, as no rule requires legislators to report their cryptocurrency transactions. WEMIX was delisted from major South Korean exchanges in November 2022.
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