"Ex-Lawmaker Cleared in Coin Gate Scandal: Crypto Not Subject to Declarations"

South Korean former lawmaker Kim Nam-guk has been cleared of wrongdoing by a Seoul court, following a high-profile scandal known as the Coin Gate. The Seoul Southern District Court acquitted Kim of charges that he obstructed officials from performing their duties.

The presiding judge, Justice Jeong Woo-yong, stated that the prosecution's case lacked evidence to prove that Kim had committed a crime. The court's decision comes after a lengthy investigation and trial, which began in 2021 when allegations surfaced that Kim had abused his position as a member of a National Assembly committee.

The Coin Gate scandal gained significant attention in South Korea, with reports claiming that Kim sold unnamed cryptocurrencies after hearing news of imminent changes to crypto-related laws. Prosecutors initially attempted to charge Kim with insider trading-related offenses but later changed the charges to "obstructing officials in the course of their duties."

Prosecutors alleged that Kim made false declarations about his cryptocurrency holdings to the National Assembly, hiding the fact that he owned a large amount of cryptocurrency and made a substantial profit from crypto investments during his two National Assembly asset declarations in 2021 and 2022.

Prosecution officials claimed that Kim sold some of his crypto holdings, transferred the fiat to a bank deposit account, and then converted the remaining assets back into crypto to obstruct the National Assembly Ethics Committee's probe into his assets. Prosecutors sought a six-month jail sentence for Kim if found guilty, but the court rejected their case, stating that cryptoassets were not subject to declarations at the time.