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The trial of Kim Nam-guk, the former lawmaker of the South Korean Democratic Party embroiled in the crypto-related “Coin Gate” scandal, has commenced in Seoul.
According to Herald Kyungjae, the initial hearing of the trial took place at a branch of the Seoul Southern District Court located in Yangcheon, Seoul, on October 28.
Coin Gate Trial: Lawmaker Refutes Allegations
Prosecutors have charged the former Democratic Party (DP) legislator with “obstructing official duties.”
They allege that he “concealed significant amounts” of cryptocurrency and submitted “false asset declarations.”
Kim has previously faced accusations of insider trading based on confidential government information he acquired while serving on National Assembly committees.
However, the prosecution has reportedly dropped this aspect of the case “due to a lack of sufficient evidence.”
Lawmaker Kim Nam-guk, the man at the center of the ‘Coin Gate’ scandal allegations, outside a courthouse in Seoul. (Source: MBN News/YouTube/Screenshot)
Instead, the focus has shifted to the belief that Kim misled a political ethics committee to conceal the earnings from his cryptocurrency investments.
His defense team asserted that Kim is innocent of all allegations, labeling the prosecution’s case as “unsubstantiated.”
The lawyers argued that although Kim should “bear political and moral responsibility for his immature actions,” he did not violate any laws.
Following the scandal, South Korea has implemented a system for crypto declarations for lawmakers and senior civil servants.
This has prompted most lawmakers with cryptocurrency holdings to divest their assets, reducing their holdings to minimal amounts of “crypto dust.”
Kim has since departed from the DP, but he is expected to return after the smaller political party he joined announced its intention to merge with the DP.
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— Reuters (@Reuters) October 27, 2024
The accused appeared in court and addressed the presiding judge:
“Since my initial candidacy, I have strived diligently to avoid engaging in even the slightest illegal activity. I also fulfilled my [asset] reporting obligations in line with the Public Official Ethics Act. I had no intention of interfering with the responsibilities of public officials.”
Lawmaker Kim Nam-guk (center), the man at the center of the ‘Coin Gate’ scandal allegations, outside a courthouse in Seoul. (Source: MBN News/YouTube/Screenshot)
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‘My Rights Have Been Violated’
He further asserted that the prosecution’s case was “unlawful” and infringed upon his legal defense rights “as protected by the Constitution.”
“I was unexpectedly summoned by phone in August of last year. Prosecutors questioned me regarding my asset declarations without providing any explanations. A week after the summons, I was indicted on a charge of obstructing official duties. These allegations were unrelated to the accusations made against me. Due to the surprise indictment, I was unable to exercise my fundamental defense rights.”
Former South Korean DP lawmaker Kim Nam-guk
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— The Korea Herald 코리아헤럴드 (@TheKoreaHerald) October 28, 2024
Kim also informed news reporters outside the courthouse that the prosecution had “issued an unreasonable indictment based on illogical reasoning.”
‘An Indiscriminate Attack’
Additionally, on Kim Nam-guk’s YouTube channel community page, the former DP lawmaker claimed:
“I was indiscriminately attacked by the media. They have been […] utterly obsessed. I will swiftly and decisively demonstrate my innocence.”
Prosecutors allege that Kim “concealed the fact” that he had “realized substantial profits from crypto investments” in 2021 and 2022 “by transferring some of his holdings from crypto wallets to a bank account to align with the total amount of his assets.”
He allegedly “converted the remaining deposits into crypto,” in an attempt to “impede the National Assembly Ethics Committee’s investigation” into lawmakers’ assets, according to prosecutors.
In 2023, prosecution officials initiated an investigation into Kim, searching and seizing data from the crypto exchanges Bithumb and Upbit.
They also raided the offices of the tech giant Kakao’s blockchain affiliate firms, to “examine transaction details.”
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‘Conflict of Interest’
The prosecution had previously aimed to charge Kim with contravening the Political Funds Act, on “suspicions regarding his use of undisclosed information.”
Media reports have previously indicated that Kim “traded crypto” during a National Assembly standing committee meeting as the Coin Gate scandal escalated.
Kim is also accused of cultivating connections with crypto industry firms and leveraging his influence to propose legislation “pertaining to video games and cryptoassets.”
This has led to further controversies over alleged “conflicts of interest.” Kim subsequently “voluntarily” exited the party before his brief return in May.
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