Former South Korean lawmaker gets 6-months in jail for lying about cryptocurrency assets

Ex-member of South Korea’s Democratic Party imprisoned for concealing 10 billion won in cryptocurrency assets.

Kim Nam-kook, a former legislator for the Democratic Party of Korea, was found guilty of hiding cryptocurrency holdings while he was a member of the National Assembly and was given a jail sentence of six months. The decision was made on the morning of Oct. 28, 2024, at Kim’s trial in the Southern District Court in Yangcheon-gu, Seoul.

Kim was charged with changing some of his cryptocurrency deposits into bank accounts to correspond with the claimed total assets while converting the rest of the funds back into cryptocurrency to hinder the NationalAssembly Ethics Committee’s investigation of property changes.

He reportedly used this method to conceal significant cryptocurrency investment earnings from 2021 and  2022 asset reports.

The estimated 10 billion won worth of cryptocurrencies held by the former politician came under intense scrutiny from the public, sparking questions about transparency and accountability in the government. In a case that has garnered a lot of interest in South Korea, Kim’s punishment represents a significant move.

The case brings to light current discussions around asset disclosure laws and the moral obligations of public servants when it comes to overseeing investments, especially in developing financial markets such as cryptocurrency.