Key Points:
- South Korean prosecutors raided crypto exchanges Upbit and Bithumb on Monday.
- Part of an investigation into suspicions surrounding the digital assets of independent legislator Kim Nam-kuk.
- A team of investigators from the Seoul Southern District Prosecutor’s Office seized transaction records and other documents from the two exchanges.
On May 15, prosecutors raided two local South Korean cryptocurrency exchanges to investigate suspicions surrounding the independent lawmaker’s digital assets of Kim Nam-guk, according to Yonhap News Agency.
South Korean prosecutors raided crypto exchanges Upbit and Bithumb on Monday as part of an investigation into the cryptocurrency scandal by independent lawmaker Kim Nam-guk when he was released identified with digital wallets on Upbit and Bithumb.
Reportedly, a team of investigators from the Seoul Southern District Prosecutor’s Office seized transaction records and other documents from two exchanges. Doubts arose about where the money came from and whether he used inside information.
As mentioned earlier, Kim Nam-guk was previously criticized after it was revealed to own around 800,000 Wemix tokens worth around 6 billion won ($4.5 million) in 2021, far from his frugal image.
Funding is questionable, and whether inside information is used. Kim, who left the main opposition Democratic Party on Sunday, also faced cryptocurrency trading charges during two sessions of the Congressional Judiciary Committee in May and November last year.
On May 11, the representative office of Upbit exchange in Seoul, Korea, suddenly appeared 10 investigators from the National Financial Supervisory Service (FSS). It is known that many computers and all users at Upbit exchange were then confiscated to review the transaction process and investors’ assets.
The cause of this problem is that the Korean government suspects that Upbit is involved in fake fees and asset appropriation as more and more investors are withdrawing cash from Upbit based on market data.
In January, law enforcement units in South Korea also broke into representative offices of exchanges such as Bithumb and Coinone on suspicion of tax evasion. Not long ago, 4 CEOs from 2 virtual currency exchanges – including the 5th largest Coinnest exchange in Korea, were also arrested for embezzlement, fraud, and property appropriation.
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Source: https://news.coincu.com/187634-korean-raid-upbit-bithumb-investigate/