South Korean prosecutors launched an investigation into two leading crypto exchanges Upbit and Bithumb as well as messaging app Kakao, due to the transactions made by former lawmaker Kim Nam-kuk on Monday. The allegations of conflict of interest over the digital assets withdrawal were made against the former Democratic Party of Korea MP last week.

The inquiry involves cryptocurrency trading activities of the politician while participating in the meetings of the National Assembly's judiciary committee in both May and November last year. Furthermore, Kim Nam-kuk also stands accused of misrepresenting his wealth by claiming to be a frugal politician while he owned 800,000 WEMIX tokens estimated at 6 billion won ($4.5 million).

The investigation was initiated by the ruling People Power Party who established a task force under the supervision of Rep. Yun Chang-hyeon and Rep. Kim Sung-won, to inspect Kim's cryptocurrency transfers.

Last Sunday, the former Democrat representative had to resign from the main opposition, after the suspicions of wrongdoings had been raised.

This investigation is a reminder of how significant and formidable the regulatory landscape in South Korea can prove to be. It also serves as a warning that cryptocurrency traders who lack a clear understanding of their local laws can find themselves in a position where they can be held accountable for the transactions they pursue. In short, those who opt to trade should always adhere to the laws that apply to cryptocurrency transactions and take full responsibility for their own acts.



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