Kim Nam-kuk, a representative in the South Korean National Assembly, recently announced that he was leaving his Democratic Party amid a crypto scandal. He was facing mounting allegations of investing a significant amount of money, around 6 billion won ($4.5 million) in the form of 800,000 Wemix coins, that weren't consistent with his frugal image. All the coins were reportedly withdrawn last March, ahead of the enforcement of the ‘Travel Rule’ in the country.

Critics pointed out that Kim’s cryptocurrency holdings may constitute a conflict of interest, as he was one of the sponsors of a bill proposing to delay income taxation of virtual currencies in July 2021. This was approximately six months before he withdrew his coins. Other allegations include the suspicion of the source of the money for his crypto investment and that he possibly used insider information.

The Democratic Party of Korea’s ethics committee launched an investigation into the issue which is now suspended due to Kim's decision to leave the party. He maintains that he is innocent and no irregularities have been involved in his trading which he has disclosed.

Despite the controversy and allegations, Kim Nam-kuk looks to clear his name and has declared that he will “demand legal accountability over media reports which he claims are based on false facts”. He will do this while acting as an independent lawmaker, outside of the Democratic Party. In his parting words, he added that “it would not be right to be a burden to the party and party members any longer”. The issue has caused a stir in South Korea and only time will tell how it concludes.



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