The South Korean prosecutor’s office reported a series of suspicious digital-asset transactions carried out by opposition party lawmaker Kim Nam-kuk. The report comes from CoinDesk Korea.
According to the investigation, from late February to early March 2022 the politician allegedly redeemed 800,000 WEMIX tokens. At that time Kim’s assets were valued at 6 billion won ($4.5 million).
Subsequently, the Financial Intelligence Unit of South Korea reported the transactions to the Financial Services Commission, which classified the withdrawals as \”suspicious operations\”, passing the data to the prosecutor.
According to Kim, he did not withdraw tokens and did not violate any laws. The deputy also noted that the ethics rules for public servants do not require reporting for virtual assets.
WEMIX was delisted from Korean exchange listings last year after the token issuer WeMade allegedly supplied inaccurate accounting data.
Kim Nam-kuk is a co-author of the 2021 amendment to the Income Tax Act that included a provision for tax deferral for virtual assets.
As reported in April 2023, reported that the Bank of Korea was preparing to tighten oversight of the crypto sector. The agency will be granted permission to investigate and track the actions of affiliated entities.
Earlier, the local Ministry of Justice announced the rollout of a system to track crypto transactions to combat money laundering in the first half of 2023.