South Korean Crypto Exchanges Upbit, Bithumb Gets Raided: Here's What Happened

The investigation was prompted by revelations that Rep. Kim Nam-kuk possessed approximately 800,000 Wemix coins in 2021.

Both Upbit and Bithumb serve as platforms for Kim's digital wallets, where he manages his cryptocurrency transactions. ( Image Source :Getty )

Officials have revealed that two local cryptocurrency exchanges in South Korea were raided by prosecutors on Monday as part of an investigation into the growing suspicions surrounding opposition lawmaker Kim Nam-kuk's digital assets. The Seoul Southern District Prosecutors Office conducted the raid on Upbit and Bithumb, seizing transaction records and other relevant materials, according to Yonhap news agency.

The investigation was prompted by revelations that Rep. Kim possessed approximately 800,000 Wemix coins in 2021, valued at around 6 billion won ($4.5 million), a significant amount that contradicts his reputation for frugality. Questions have emerged regarding the origin of the funds and whether he had access to insider information.

In addition to the cryptocurrency holdings, Kim has also faced allegations of engaging in cryptocurrency trading while attending two meetings of the judiciary committee of the National Assembly in May and November of the previous year. These allegations have further fueled suspicions surrounding his actions.

Both Upbit and Bithumb serve as platforms for Kim's digital wallets, where he manages his cryptocurrency transactions. The raid by prosecutors aimed to gather evidence and shed light on the lawmaker's involvement in the cryptocurrency market.

The investigation signifies the ongoing efforts of South Korean authorities to regulate the cryptocurrency industry and ensure transparency and accountability among lawmakers. Cryptocurrencies have gained significant popularity in the country, but concerns about illicit activities and potential market manipulation have led to increased scrutiny.

As the investigation unfolds, prosecutors will examine the seized records and materials to determine the source of Kim's digital assets and whether any illegal activities were involved. The outcome of the investigation will shed light on the lawmaker's actions and could have far-reaching implications for the regulation of cryptocurrencies in South Korea.

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