South Korean cryptocurrency exchanges Upbit and Bithumb faced raids by prosecutors on Monday, as they investigated the digital assets of opposition lawmaker Kim Nam-kuk.
Seizure of Transaction Records and Materials
The Seoul Southern District Prosecutors Office conducted the raid on Upbit and Bithumb, seizing transaction records and other relevant materials, according to Yonhap news agency.
Revelations about Kim Nam-kuk’s Cryptocurrency Holdings
The investigation was prompted by revelations that Rep. Kim possessed approximately 800,000 Wemix coins in 2021, valued at around 6 billion won ($4.5 million). This amount contradicts his reputation for frugality and raises questions about the origin of the funds and possible access to insider information.
Allegations of Cryptocurrency Trading and Suspicions
Kim has also faced allegations of engaging in cryptocurrency trading during two meetings of the judiciary committee of the National Assembly in May and November of the previous year. These allegations have further fueled suspicions surrounding his actions.
Aim of the Raid: Gathering Evidence and Shedding Light
Both Upbit and Bithumb serve as platforms for Kim’s digital wallets, where he manages his cryptocurrency transactions. The raid conducted by prosecutors aimed to gather evidence and shed light on the lawmaker’s involvement in the cryptocurrency market.
Ongoing Efforts to Regulate the Cryptocurrency Industry
The investigation signifies the ongoing efforts of South Korean authorities to regulate the cryptocurrency industry, ensuring transparency and accountability among lawmakers. Cryptocurrencies have gained significant popularity in the country, but concerns about illicit activities and potential market manipulation have led to increased scrutiny.
The outcome of the investigation could have far-reaching implications for cryptocurrency regulation in South Korea as prosecutors analyze the seized records and materials to determine the source of Kim’s digital assets and whether any illegal activities were involved.
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