South Korean Lawmaker Sells $85,700 in Bitcoin Amid Political Scandals; Others Join in Liquidating Crypto Assets

South Korean lawmakers are distancing themselves from cryptocurrency, claiming their wallets now contain nothing more than “crypto dust.” This follows a series of political scandals involving crypto, with several prominent lawmakers selling off their holdings.

One Member of Parliament reportedly sold $85,200 worth of Bitcoin soon after declaring his assets. The shift comes amid rising scrutiny over politicians’ involvement with cryptocurrencies, particularly after the “Coin Gate” scandal. This scandal implicated former lawmaker Kim Nam-guk, who was accused of insider trading and using confidential information to trade coins. These allegations have pushed lawmakers to declare their crypto holdings publicly before elections.

To avoid public criticism, many lawmakers have liquidated their crypto assets, leaving only small amounts, referred to as “crypto dust.” Crypto dust refers to tiny quantities of tokens left behind after a sale, often too small to trade due to exchange limits.

Some lawmakers, such as Cheon Ha-ram of the New Reform Party, revealed having wallets with coins received through airdrops. His wife’s 11 wallets, for example, contained a total of $16 worth of tokens. Similarly, Democratic Party lawmaker Kim Jun-hak sold his $85,700 worth of Bitcoin after declaring his holdings, while Park Chung-kwan of the People’s Power Party liquidated his Solana holdings earlier this year.

Cheon Ha-ram told Sisa Journal, “I sold everything that could be sold. I am left with only small amounts of scrap that cannot be traded.I knew my wife was trading coins, but I never got involved and I didn’t know which type of coin she traded and how much.” 

Before the April 2024 elections, only 36 out of 300 South Korean lawmakers reported holding cryptocurrencies with any value. However, the total worth of their crypto holdings amounted to a negligible 0.01% of their overall assets.