Raids at Upbit and Bithumb Over Suspicious Crypto Transactions by Deputy Kim Nam-kuk

South Korean prosecutors conducted raids and asset seizures at the offices of the bitcoin exchanges Upbit and Bithumb in connection with suspicious transactions by National Assembly deputy Kim Nam-kuk. CoinDesk Korea.

According to the report, attention also turned to Kakao, the operator of the KakaoTalk messaging app, because the legislator used the Klip crypto wallet.

According to prosecutors, from late February to early March 2022 the politician allegedly cashed out 800,000 WEMIX tokens. At the time, Kim’s assets were valued at 6 billion won ($4.5 million).

The Financial Services Commission, which detected the transactions, provided the information to prosecutors. The regulator classified the transactions as ‘suspicious’.

The ruling People Power Party’s faction announced the formation of a parliamentary working group to conduct an independent investigation into Kim’s actions. A lawmaker representing the opposition Democratic Party in Parliament submitted his resignation.

Upbit confirmed that raids and asset seizures had taken place, adding that the investigative steps have been completed.

Earlier in January, the Seoul Southern District Prosecutors’ Office searched the offices of Bithumb as part of an investigation into price manipulation of an unnamed coin.

Authorities also issued an arrest warrant for the company’s owner Kan Jong-hen, suspected of embezzlement and stock manipulation involving the shares of affiliated firms.