South Korean Deputy Suspected of Illegal Crypto Transactions

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South Korean prosecutors have reported a series of suspicious digital asset transactions allegedly carried out by opposition MP Kim Nam-kook.

From late February to early March of 2022, Kim is reported to have cashed out 800,000 WEMIX tokens, when his assets were estimated at 6 billion won ($4.5 million USD).

The Financial Intelligence Unit later reported the transactions to the Financial Services Commission, which classified the withdrawals as “suspicious transactions” before passing the data to the prosecutor’s office.

Kim Nam-kuk claims he did not withdraw the tokens and did not violate any laws, as there are no reporting requirements for virtual assets in the decree on the ethics of civil servants.

The token had previously been delisted from South Korean exchanges due to the issuer of the token, WeMade, allegedly passing on inaccurate accounting data.

Kim had also co-sponsored an amendment to the Income Tax Act of 2021 that included a tax deferral provision for virtual assets.