Kim Nam-kuk, a South Korean lawyer and politician, has agreed to liquidate his entire altcoin wallet after insider trading allegations against him.
$700,000 sell-off drags altcoin price down
According to South Korean sources, Kim Nam-kuk is reportedly going to sell all the cryptocurrencies he holds due to a conflict of interest surrounding his investments. The Democratic Party (DP), of which he is a member, will launch an investigation to determine whether it complies with local requirements when acquiring the tokens. He also urged Nam-kuk to sell around 800,000 Wemixes following insider trading allegations.
As the chart below shows, WEMIX (WEMIX) is about to break a multi-month support level during the news. Nam-kuk reported that he will be collaborating to sell his altcoin wallet, which is worth around $700,000.
Kim Nam-kuk confirms he will sell his entire wallet
According to their statement, “I received advice from the party to sell my cryptocurrencies. I will faithfully follow the advice. I will transparently disclose data to the investigation team and will pass through the investigation faithfully.”
Nam-kuk allegedly withdrew cryptocurrencies before March 2022, ahead of legislation requiring cryptocurrencies to disclose personal data when transferring over 1 million won ($758). The lawmaker was also involved in a bill proposing the deferral of income tax on cryptocurrencies. Interestingly, this move came a few months before the Wemix price pulled back.
South Korea delays crypto taxes to 2025
South Korean authorities have revealed their intention to impose a 20% tax on profits from cryptocurrency trading from the beginning of 2022. While the legislation sparked controversy among lawmakers, it was well received by most locals.
The People’s Power Party proposed in October 2021 that the rule enter into force with a one-year delay (from 1 January 2023). The political group also argued that people with less than $42,000 a year in profits should be excluded from taxation.
The Democratic Party also tried to delay the bill. Eventually, the Korean government decided to delay the rule until 2025. Crypto profits will be available to any local that exceeds $1,900 per year.
Kim Nam-kuk is not alone: This legislator manipulated the rules
In another corruption report from South Korea, a member of the legislature is allegedly making money on cryptocurrencies. The lawmaker named Yeon Hee-soo has been found to make huge profits during legislative work to determine regulations regarding cryptocurrencies.
The allegations were made by several opposition party members. These individuals claimed that Hee-soo made a profit by making changes that would affect their own investments during their work on determining the cryptocurrencies bill.
The law in question aims to impose tighter control over South Korea’s cryptocurrencies industry. However, it is claimed that Hee-soo also directed his investments during the legislative work. This raised questions about whether the bill was prepared ethically. As Cryptokoin.com has reported, South Korea is one of the largest crypto investment regions in the world.
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