South Korean prosecutors have conducted searches and asset seizures at the offices of bitcoin exchanges Upbit and Bithumb in connection with an investigation into suspicious transactions by National Assemblyman Kim Nam-kook. It is reported by CoinDesk Korea.
According to the publication, the attention of law enforcement officers was also attracted by the operator of the Kakao messenger, since 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 that time, Kim’s assets were estimated at 6 billion won ($4.5 million).
Data on Kim’s transactions, discovered by financial intelligence, was handed over to prosecutors by the Financial Services Commission. The regulator classified the transactions as “suspicious”.
A faction of the ruling People’s Party of Power announced the creation of a parliamentary working group to independently investigate Kim’s actions. The politician representing the opposition Democratic Party in parliament has resigned.
Upbit confirmed that the searches and seizures had been carried out, adding that the investigative actions were “completed”.
In January, the Seoul Southern District Prosecutor’s Office raided Bithumb’s offices as part of an investigation into price manipulation of an unnamed coin.
Authorities have also issued an arrest warrant for the owner of the company, Kang Jong-hyun, who is suspected of embezzlement and fraud with shares of affiliated firms.