South Korean Lawmaker Acquitted in Crypto Disclosure Case

South Korean lawmaker Kim Nam-kuk has been acquitted of charges related to concealing cryptocurrency holdings and obstructing public duty. The Southern Seoul District Court ruled that Kim was not legally required to disclose his virtual assets at the time of the alleged offense.

Prosecutors accused Kim of failing to report approximately $4.5 million in cryptocurrency profits before South Korea enforced the Financial Action Task Force’s (FATF) "Travel Rule," which mandates crypto asset disclosure. They sought a six-month prison sentence, arguing that Kim had reported total assets of 1.2 billion won ($834,000) in 2021 while allegedly holding nearly 9.9 billion won ($6.8 million) in crypto.

Judge Jeong Woo-Yong ruled that the Public Service Ethics Act did not require lawmakers to disclose digital assets at the time. The court found no evidence proving Kim intentionally misled the Ethics Committee regarding his holdings.

The controversy forced Kim to resign from the Democratic Party to ease political pressure. He has consistently denied wrongdoing and any conflict of interest, despite his involvement in delaying a 20% tax on crypto gains.

While Kim has been cleared in the first trial, prosecutors may appeal the verdict, potentially leading to further legal proceedings.