South Korean lawmaker Kim Nam-kuk has been reportedly acquitted of charges for concealing his cryptocurrency holdings.
A court ruled that he was not legally required to disclose virtual assets at the time of the accusations.
In a verdict delivered by Judge Jeong Woo-Yong of the 9th Criminal Division of the Southern Seoul District Court on February 10, Kim was found not guilty of obstructing public duty by deceit. The case stemmed from allegations that he deliberately concealed his crypto assets, estimated to be worth approximately 9.9 billion won ($6.8 million), while officially reporting total assets of only 1.2 billion won ($834,000) in 2021.
Prosecutors had accused Kim of evading financial disclosure requirements and sought a six-month prison sentence in December 2024. They argued that his actions obstructed the National Assembly Ethics Committee’s review of lawmakers’ financial disclosures, potentially creating a conflict of interest.
Kim allegedly liquidated his cryptocurrency holdings before South Korea implemented the Financial Action Task Force (FATF) “Travel Rule,” which mandated reporting of virtual assets. However, Judge Jeong ruled that South Korea’s Public Service Ethics Act did not require public officials to declare cryptocurrency holdings at the time
“At the time, virtual assets were not registered assets according to the Public Service Ethics Act. It is difficult to see that Kim had an obligation to register those assets.”
The court stated in its ruling. “This is considered a case without criminal evidence.”
Kim resigned from the Democratic Party amid controversy over his cryptocurrency dealings while serving as a National Assembly member. He was involved in shaping digital asset regulations, including a proposed 20% tax deferral on crypto gains, leading to accusations that his private holdings influenced his legislative actions, which he denied. Although he was cleared of charges in the initial ruling, prosecutors may still appeal. The case has sparked debates on lawmakers’ ethical responsibilities regarding cryptocurrency ownership and financial transparency in South Korea.
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