South Korean Lawmaker Sentenced to Prison for Concealing $7.5M in Crypto

A South Korean politician has been sentenced to prison for hiding millions in cryptocurrency during his time in office.

Kim Nam-kook, a former member of the Democratic Party, was found guilty of falsifying his asset declarations to conceal about $7.5 million in crypto holdings. The deception came to light during a trial where prosecutors claimed that Kim had deliberately transferred his funds between bank accounts and digital wallets to mislead authorities about his wealth.

The case revolves around Kim’s property declarations in 2021 and 2022, where he reported significantly lower assets than he actually held. In 2021, he declared a total worth of 1.2 billion won ($900,000), omitting 9.9 billion won ($7.5 million) in cryptocurrency. The following year, he also hid nearly $750,000 worth of coins. Prosecutors argued that his actions were intentional and that they obstructed the ethics committee’s ability to properly evaluate his finances.

Kim’s case highlights the ongoing challenges in South Korea’s crypto landscape. The country has seen a rapid rise in cryptocurrency adoption, making it one of the largest markets for digital assets. South Korea’s government has implemented various regulatory measures, including banning ICOs in 2017 and introducing a real-name trading system after a market crash in 2018.

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More recently, in 2021, new laws required Virtual Asset Service Providers to comply with anti-money laundering regulations.

Despite these efforts, South Korea’s crypto market continues to thrive. In December 2024, daily trading volumes surpassed $18 billion, outpacing the stock market. Major exchanges like FameEX and Upbit dominate the sector, with billions in transactions processed daily. However, the government still grapples with how to regulate and tax the industry effectively. A planned 20% capital gains tax on crypto profits was delayed until 2027 due to public concerns, buying time for further discussions on striking the right balance between regulation and growth.

Alexander Zdravkov