Two crypto exchanges in the sights of South Korea

As part of an investigation into a politician’s dodgy crypto investments in South Korea, two national crypto exchanges are raided. During the search, South Korean prosecutors seized numerous documents.

Two crypto exchanges raided in South Korea over cryptocurrency scandal

Raid of crypto exchange in South Korea following the Kim Nam-Kuk case

For several years, South Korea has been campaigning against crypto fraud. Regarding the Kim Nam-Kuk affair, it began with revelations concerning Wemix coin assets of the Member of the National Assembly of South Korea. This politician owned about 800,000 Wemix coins. That would be the equivalent of 6 billion won ($4.5 million). An exorbitant amount of crypto that just owning them comes across as an offense in South Korea. Thus, Kim Nam-Kuk is suspected of having an astronomical amount of virtual currencies linked to suspicious crypto transactions.

Three crypto exchanges are involved in this case in South Korea. These are Upbit, Bithumb and Kakao Kli. THE reports show that Kim Nam-Kuk has digital wallets on these three crypto exchanges and allegedly transferred coins from Bithumb to Upbit early last year. Transactions that the Korean Financial Intelligence Unit finds questionable, thus forcing it to notify the prosecutor’s office.

The politician reportedly withdrew his assets before South Korea’s famous G7 ‘travel rule’ was enforced.

Searches and seizures on the platforms concerned

Kim Nam-Kuk says there’s nothing questionable about his crypto trading. Nevertheless, the searches of the two crypto exchanges were maintained. They took place on May 15.

During the searches, prosecutors handling the case seized tapes and other documents from Upbit and Bithumb. Documents were also seized during the search of Kakao Klip.

Kim Nam-Kuk along with token issuer Wemix view this South Korea crypto exchange deal as fake news. But prosecutors disagree. To be continued…

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