South Korean lawmakers sell crypto amid scandals and scrutiny

South Korean lawmakers are distancing themselves from cryptocurrency following a series of political scandals involving digital assets.

Amid growing public scrutiny, some legislators have liquidated their crypto holdings, leaving only small amounts known as "crypto dust."

This comes after the "Coin Gate" scandal, where former lawmaker Kim Nam-guk was accused of insider trading using confidential information, sparking controversy and pushing officials to declare their assets.

One notable example is Democratic Party lawmaker Kim Jun-hak, who reportedly sold $85,700 worth of Bitcoin (CRYPTO:BTC) shortly after publicly declaring his assets.

Similarly, other lawmakers have followed suit, with People’s Power Party member Park Chung-kwan selling off his Solana holdings earlier this year.

These actions have been seen as efforts to avoid public criticism and distance themselves from cryptocurrency ahead of the upcoming elections.

Cheon Ha-ram, a member of the New Reform Party, revealed that he and his family held crypto assets from airdrops but have since sold everything that could be traded.

In an interview with Sisa Journal, Cheon commented, "I sold everything that could be sold. I am left with only small amounts of scrap that cannot be traded."

The Coin Gate scandal has raised concerns over politicians' involvement with digital assets, leading to heightened scrutiny of their financial dealings.

As part of the fallout, South Korean lawmakers have been compelled to publicly declare their cryptocurrency holdings, with many opting to sell their assets to avoid further controversy.

By April 2024, only 36 of the 300 South Korean lawmakers had reported owning any cryptocurrencies, with the total value of their holdings amounting to just 0.01% of their overall assets.