A Korean Politician Resigns As A Result Of A Crypto Controversy Worth Over 6 Billion Won

Key Points:

• Kim Nam-kuk, a South Korean National Assembly member, has announced his departure from the Democratic Party in response to public pressure over his bitcoin transactions.
• Mr. Kim came under fire after it was found that he possessed around 800,000 WEMIX tokens by 2021. The cryptocurrency was worth 6 billion won (about $4.5 million) at the time.

A South Korean politician just announced his resignation after being accused of making millions of dollars in bitcoin investments.

A member of South Korea’s National Assembly was forced to resign from the Party after being accused of having “huge” crypto assets that do not suit the thrifty image of a politician. Kim Nam-kuk, a South Korean National Assembly member, has announced his departure from the Democratic Party in response to public pressure over his bitcoin transactions.

“Today, I will leave my Democratic Party,” Mr. Kim said on his personal Facebook page. “I no longer want to be a burden to the Party and its members.”

According to Yonhap, Kim has come under fire after it was revealed that he will control around 800,000 WEMIX tokens by 2021. The cryptocurrency was valued 6 billion won (or 4.5 million USD) at the time. “This is a large sum of money that completely contradicts his frugal image.”

For a time, WeMade was likewise a contentious project. WEMIX was delisted by Korean exchanges at the end of 2022 due to insufficient circulating supply. The South Korean lawmaker is alleged to have withdrawn all of his cryptocurrency funds in March of last year, before the “Travel Rule” went into effect. The rule specifically mandates all exchanges to report transactions involving bitcoin worth one million won or greater.

Because critics and the public are concerned about conflicts of interest, the Party’s ethics committee has initiated an investigation into Mr. Kim’s cryptocurrency transactions. Kim was a backer of a plan to postpone the income tax on cryptocurrency holdings until July 2021.

There were no irregularities discovered during the examination, and some of Kim’s transaction data was also made public. However, the Korean media did not stop criticizing the politician, accusing him of abusing inside knowledge.

Kim elected to retire in the face of a mounting media scandal, saying, “I believe that I should not cause any harm to the Democratic Party at this critical time.” But I will battle till the end to disclose the truth.”

Mr. Kim emphasized that, as an independent legislator, he will fight media claims that he believes are false.

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