Lawmaker suspected of crypto money laundering: Upbit

Rep. Kim Nam-kuk responds to questions from reporters at the National Assembly in Seoul, Wednesday. Yonhap

By Lee Min-hyung

Rep. Kim Nam-kuk, a scandal-tainted lawmaker, appears to have engaged in “highly suspicious” crypto trading activities, which might be linked with possible money laundering, a ruling party lawmaker said, citing sources from Upbit, the nation's largest crypto exchange.

“Upbit responded that Kim is suspected of money laundering, as his trading acts look abnormal from the viewpoint of experts,” Rep. Kim Sung-won of the ruling People Power Party told reporters during a briefing after holding the fourth round of a fact-finding committee meeting on Kim Nam-kuk.

Dunamu CEO Lee Sirgoo also attended the meeting to clarify whether the scandal-hit lawmaker has conducted any unfair crypto trading through the exchange. Dunamu is the operator of the exchange. A group of 10 experts also took part in the closed-door meeting.

Kim Nam-kuk has come under fire for his suspicious crypto trading worth 6 billion won ($4.53 million).

The committee is focusing its investigation on whether he has engaged in crypto trading with insider information due to the suspicious trading record. He purchased about 40 types of cryptocurrencies ― most of which are unpopular alternative coins.

However, the value of some of the coins surged shortly after Kim jumped into a buying spree of them. For instance, he invested 400 million won to buy 57,000 Mekong coins at 6,800 won per coin in mid-February 2022. But its price more than doubled to 17,000 won per coin, only four days after his trades.

He also bought some unlisted coins. But some of them were listed on a local exchange with price hikes, soon after Kim's investment.

Local exchanges maintain their position that they have never provided any information on crypto listing plans to Kim.

Nevertheless, the controversy surrounding Kim is showing little sign of abating due to the suspicious timeline of his trades.

Both ruling and opposition parties are intensifying political pressure on Kim, urging the Assembly's ethics committee to make swift decisions over the level of discipline to be meted out to him. The decision is forecast to be made as early as July.

The next round of the committee meeting will be held on June 8.