Namguk Kim Denies Charges of Hiding Crypto Assets, Claims ‘Unreasonable Indictment’

In his first court appearance, former South Korean Democratic Party lawmaker Namguk Kim denied accusations that he concealed vast cryptocurrency earnings to misrepresent his assets. He called the prosecution’s case “unreasonable.”

Kim, who allegedly obscured holdings worth 9.9 billion won, argued the charges lack legal standing. He noted that virtual assets were not mandated for reporting under Korean asset disclosure laws.

The first trial was held at the Seoul Southern District Court by Judge Woo-Yong Jeong of the court’s 9th Criminal Division. Kim is accused of obstruction of official duties for allegedly masking significant profits derived from virtual assets. These would have influenced his reported wealth during his tenure as a lawmaker. His attorney countered that while Kim acknowledges political and moral accountability for his financial conduct, his actions did not constitute a breach of any legal reporting obligation.

“All of the facts of the indictment are denied,” Kim’s attorney reportedly stated. “According to Supreme Court precedent, asset reporting is primarily a registration procedure.” He asserted that “it cannot be considered an obstruction of specific official duties.”

Kim’s defense further cited the Korean Public Official Ethics Act, arguing that asset reporting mandates apply to assets held by public officials as of December 31 each year. According to Kim, he complied with all legal asset reporting requirements by that date. This allegedly made the prosecution’s claims of concealed holdings unfounded.

Alleged Procedural Missteps by the Prosecution

The defense also raised concerns about the prosecutorial process, claiming that Kim’s basic rights were compromised. Namguk Kim reported being abruptly summoned by phone in August last year, where he was asked questions solely about his asset declarations. A week later, he faced formal charges, allegedly without any warning or preliminary evidence of wrongdoing. “The right to defense, as guaranteed by the Constitution, was seriously violated,” he asserted.

Kim claimed the surprise indictment hindered his ability to properly defend himself. He described the prosecution’s case as hastily prepared and unsupported. Speaking to reporters outside the courtroom, he claimed that his asset declarations, which included deposits moved between his virtual asset account and bank. These were aligned with Korea’s official reporting requirements and that he had “no intent to interfere with official duties.”

Accusations of Concealment and Asset Manipulation

The prosecution contended that Namguk Kim manipulated asset transfers to obscure the scale of his cryptocurrency holdings. According to their investigation, he moved substantial funds between his virtual wallet and a bank account in early 2022, coinciding with his annual financial disclosures. The prosecution suspected these maneuvers were intended to circumvent a full evaluation by the National Assembly Ethics Committee, thus misrepresenting the total value of his assets.

Authorities launched an investigation into Kim’s transactions in 2023, seizing records from major cryptocurrency exchanges Bithumb and Upbit. They even seized from Kakao’s blockchain affiliates to trace his financial activities. Although initial concerns included potential violations of the Political Funds Act, such as the possible use of insider information or unlawful funding sources, the prosecution ultimately refrained from pursuing those charges due to insufficient evidence.

Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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