Breaking: Upbit & Bithumb Crypto Exchanges Get Raided By South Korean Prosecutors

Crypto News: As part of an investigation into the escalating suspicions around opposition legislator Kim Nam-kuk’s crypto holdings, prosecutors in South Korea conducted raids on two of the country’s local cryptocurrency exchanges on Monday. According to a report published by Yonhap in South Korea, a group of detectives from the Seoul Southern District Prosecutors Office collected transaction records and other information from Upbit and Bithumb.

Upbit & Bithumb Get Raided

The actions come at a time when Representative Kim was under fire after it was revealed that he held around 800,000 Wemix coins in 2021, which had a value of approximately $4.5 million at the time. This, however, was a considerable quantity that was inconsistent with his reputation as a frugal person.

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Therefore, there have been questions raised over the origin of the money and whether or not he made use of confidential information. However, the Wemix team has denied the charges and published a blog post that quoted:

Reports to the effect that WeMade illegally supported Wemix or provided internal information related to investments to members of the National Assembly are completely untrue.

In addition to this, allegations have been made that Kim traded coins during meetings of the National Assembly’s judiciary committee in May and November of the previous year.

Kim’s Tryst With Cryptocurrencies

On Monday, the party in power, the People’s Power Party, announced that they will initiate an internal task force to probe Kim’s cryptocurrency transfers. The task group will be led by Representative Yun Chang-Hyeon, who chairs the special committee on digital assets, alongside Kim Sung-won.

During his tenure in the office, he advocated and voted in favor of regulatory legislation that would have recognized certain forms of gaming tokens as cryptocurrencies. On Sunday, Kim handed in his resignation from the primary opposition Democratic Party.

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