The allegations of a coin lobbying scandal involving former lawmaker Kim Nam-kuk and Wemade’s cryptocurrency, WEMIX, have been resolved. The case has been dismissed with no charges.
On the 26th, the Financial Investigation Division 1 of the Seoul Southern District Prosecutors’ Office indicted former lawmaker Kim Nam-kuk on charges of obstructing official duties by deceit. This was in connection with his failure to disclose cryptocurrency assets during his 2021-2022 asset declaration as a National Assembly member.
Kim was accused of concealing around 9 billion KRW in cryptocurrency as part of an effort to hide significant profits from past cryptocurrency investments. Although cryptocurrencies were not originally required to be reported as part of public officials' asset declarations, prosecutors argued that Kim’s actions, such as hiding profits, constituted evidence tampering.
However, the charges related to violations of the Political Funds Act were dismissed. Kim had been under investigation for allegedly receiving illegal funds or insider information from cryptocurrency issuers, as part of a lobbying effort related to cryptocurrency legislation.
Due to Kim’s substantial holdings in WEMIX and the significant profits he earned from it, the prosecution also investigated Wemade, the issuer of WEMIX and its related parties.
During this period, Wi Jong-hyun, president of the Korea Game Society, alleged that cryptocurrency companies had been lobbying politicians. He called for a full investigation of all members of the National Assembly and their aides, from both ruling and opposition parties.
He coined terms like 'the WEMIX crisis' and 'WEMIX profit community' to describe the situation. These claims, amplified by the media, severely damaged Wemade’s reputation by suggesting that the company had engaged in illegal lobbying with the National Assembly.
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Lawmakers from the People Power Party who visited Wemade
Despite claims to the contrary, no evidence has been found to support the allegations against Wemade in the 'Coin Gate' scandal. The ruling People Power Party's task force investigating the scandal visited Wemade but uncovered no evidence of lobbying lawmakers, and there were no records of Wemade personnel entering the offices of the implicated lawmakers. As a result, Wemade filed a defamation lawsuit against Wi Jong-hyun, seeking 500 million KRW in damages.
With Kim's recent acquittal due to insufficient evidence, Wemade has effectively been cleared of the political lobbying allegations. This also strengthens Wemade's position in its defamation lawsuit.
Following the announcement that Wemade was cleared of wrongdoing, the price of WEMIX surged. On the 26th, WEMIX opened at 1,127 KRW but rapidly climbed 19.3% to reach 1,345 KRW after the news broke.
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김태만 기자 ktman21c@gamevu.co.kr
