The South Korean financial service has informed local prosecutors about a series of suspicious cryptocurrency transactions made by an MP from an opposition party.

Democratic Party of Korea representative Kim Nam-kuk allegedly withdrew 800,000 WEMIX tokens between late February and early March 2022. From January to February 2022, Kim’s assets on WEMIX were 6 billion won ($4.5 million).

The South Korean authorities classified the withdrawals as suspicious transactions and reported them to the prosecutor’s office. Kim said he did not cash out his tokens and did not break any laws as there are no reporting requirements for virtual assets in South Korea’s civil service ethics law.

WEMIX was delisted from major exchanges in South Korea last year for allegedly reporting inaccurate data by the token issuer, WeMade. WeMade unsuccessfully challenged the delisting in court.

In April, it became known that the Central Bank of South Korea will strengthen its control over the activities of virtual asset service providers (VASPs) and cryptocurrency issuers by requesting transaction data from cryptocurrency exchanges.

Last year, the South Korean Financial Services Commission (FSC) announced that it would monitor investors’ crypto transactions worth more than 100 million won ($70,000). In the fall, the department, together with the National Assembly, began working on a bill that would punish crypto exchanges for hiding information and manipulating prices.