- South Korean lawmaker Kim Nam-kuk allegedly withdrew 800,000 WEMIX tokens, sparking controversy.
- Financial Intelligence Unit reported transactions to prosecutor’s office, citing suspicious activity.
- WEMIX was delisted from major exchanges for alleged inaccurate circulation supply figures.
South Korean lawmaker Rep. Kim Nam-kuk is facing public scrutiny and outrage over his alleged withdrawal of 800,000 WEMIX tokens, worth 6 billion won ($4.5 million) from January to February 2022.
The Financial Services Commission’s Financial Intelligence Unit (FIU) deemed the transactions suspicious and reported them to local prosecutors, as per CoinDesk Korea.
This controversy coincides with the recent implementation of the FATF’s travel rule in South Korea, which mandates that exchanges collect personal data on transactions exceeding a specific threshold and report them to authorities.
Despite the allegations, Rep. Kim claims he did not cash out his tokens and has not broken any laws, as virtual assets are not subject to reporting requirements under South Korea’s Public Service Ethics Act.
Adding to the controversy, WEMIX, the cryptocurrency in question, was delisted from major South Korean exchanges last year due to accusations of inaccurate circulation supply figures. The issuing company, WeMade, unsuccessfully contested the delisting in court.
Amidst ongoing challenges faced by the cryptocurrency sector, this incident underscores the importance of trust and accountability in the political realm.
As the crypto space continues to develop, it is crucial for the public to remain vigilant and demand ethical conduct from elected officials, ensuring a brighter future for the industry as it navigates potential hurdles.
Read also:
disclaimer read moreCrypto News Land, also abbreviated as "CNL", is an independent media entity - we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
