Coin transaction platform searched as part of probe into lawmaker’s crypto suspicions

May 22, 2023

Prosecutors raided a cryptocurrency transaction platform Monday as part of a probe into Rep. Kim Nam-kuk’s dubious crypto transactions.

The Seoul Southern District Prosecutors Office sent investigators to Ozys PTE Ltd. in Seoul’s Yeouido, the operator of the crypto platform, Klayswap, to seize evidence, officials said.

Kim, a first-term lawmaker, has been under investigation following revelations that he owned around 800,000 Wemix coins in 2021, worth around 6 billion won (US$4.5 million) at the time. The financial source of Kim’s massive coin holdings has been the main focus of the investigation.

Klayswap is an instant swap protocol, enabling the transfer and deposit of Ethereum-based assets held in centralized exchanges or digital wallets to Klayswap tokens.

Rebutting allegations that Kim might have taken the tokens for free from the game industry via “airdrop,” the lawmaker said earlier in May he only used Klayswap and that all the transaction records there are transparently disclosed.

Kim departed from the main opposition Democratic Party last week as suspicions grew about the source of his massive crypto holdings and whether the lawmaker had insider information.

Rep. Kim Nam-kuk (Yonhap)
Rep. Kim Nam-kuk (Yonhap)