檢, Kim Nam-guk coin transaction history secured… Intensive Inspection on Illegal Acquisition of ‘Airdrop’｜The Dong-A Ilbo

The prosecution, which is investigating the suspicion of holding a large amount of virtual assets by independent lawmaker Kim Nam-guk, seized and searched a large domestic virtual currency exchange and Kakao affiliates for the second day. Prosecutors also launched an investigation into the case of accusation of fraud and violation of the Capital Market Act against the CEO of WeMade, WeMade, the issuer of Wemix Coin, which Congressman Kim held in large quantities.

Detective Division 6 of the Seoul Southern District Prosecutor’s Office (Chief Prosecutor Lee Joon-dong) announced on the 16th that it had additionally conducted a search and seizure of two affiliates related to the blockchain of Bithumb and Kakao, through which Rep. Kim traded coins. The prosecution is known to have secured coin transaction details that can confirm the source of Congressman Kim’s initial investment in the search and seizure conducted on the second day.

In particular, the prosecution is intensively examining whether there was any illegality in the process of acquisition and transaction in relation to the fact that the coin company paid Coin to Rep. Kim through an ‘airdrop’ in which coins are distributed free of charge. An official from the prosecution said, “We are reviewing whether the coins held by Rep. Kim are securities through the transaction records obtained from the seizure and search,” and “we are leaving open the possibility of additional seizure and search.” If the coin’s securities properties are recognized, charges of violating the Capital Market Act may be added to the charges of violating the Political Fund Act currently applied to Congressman Kim, tax evasion, and concealment of criminal proceeds.

Prosecutors also plan to investigate whether Rep. Kim made coin transactions using undisclosed information. As Rep. Kim’s traces of buying and selling various types of ‘Japcoin’ as well as Wemix are revealed, industry experts are raising suspicion that “Isn’t it an investment using undisclosed information?” It is also being reviewed whether Congressman Kim’s participation in the past ‘coin tax deferment’ bill constitutes a conflict of interest.

In addition, the Seoul Southern District Prosecutor’s Office is also investigating whether there was any illegality in the process of distributing a larger amount of Wemix than originally announced. About 20 Wemix investors sued CEO Jang on the 11th, saying, “Wemade intentionally deceived investors by providing false information about Wemix distribution and suffered great losses.” WeMade issued a statement in the name of CEO Jang and explained, “The report to the effect that we illegally supported Wemix or provided internal information related to investment to members of the National Assembly is not true at all.”

It is known that the prosecution is also reviewing a compulsory investigation into Rep. Kim’s cell phone and residence to check whether he has an overseas wallet. In addition, the prosecution is promoting a plan to establish a ‘virtual asset joint investigation team’ (tentative name) at the Seoul Southern District Prosecutor’s Office, considering the recent increase in virtual asset-related crimes.
Reporter Lee Seung-woo [email protected]
Reporter Son Joon-young [email protected]