It was found that NH Nonghyup Bank’s ‘Travel Rule’ preparation measures were behind the suspicion of a large amount of coin investment by Rep. Kim Nam-guk . NH Nonghyup Bank, which signed a real-name confirmation deposit and withdrawal account (real-name account) contract with Bithumb in January of last year, blocked withdrawals to the ‘personal wallet’, and Congressman Kim, who used Bitsum as the ‘main exchange’, transferred funds to his personal wallet ‘Clip’
. because it is not possible to transfer Accordingly, Rep. Kim indirectly transferred funds in the order of ‘Bithumb → Upbit → Klip’, and as Upbit detected his transaction as ‘abnormal transaction’, the suspicion of Congressman Kim’s coin ownership was revealed to the world. As a result of the coverage of <News 1> on the 21st, Congressman Kim sent 620,000 (approximately 4.7 billion won) from Bithumb to Upbit in just 12 hours on January 31 last year, and 577,000 of them (approximately 4.4 billion won) were sent to Klip. . As Upbit was simply used as a ‘moving channel’ to transfer Wemix for a large amount of money, Upbit detected it as an abnormal transaction. Travel rules had an effect on why Rep. Kim had no choice but to make such a deal. The travel rule refers to a rule to share sender and receiver information when transferring money between virtual asset operators to prevent money laundering . As one of the provisions of the Specified Financial Information Act (Special Act), it is applied to virtual assets worth 1 million won or more. In Korea, it came into effect on March 25, 2022.
Early last year, domestic virtual asset exchanges ahead of the application of the travel rule were in a series of confusion. In particular안전놀이터, Bithumb and Coinone suffered the greatest confusion. This is because NH Nonghyup Bank, which was a real-name account partner of the two exchanges at the time, had a ‘super strong’ ahead of the travel rule.
On January 24 of last year, just two months before the implementation of the Travel Rule, Bithumb blocked withdrawals to personal wallets at the request of Nonghyup Bank. This is because personal virtual asset wallets, not exchanges, are difficult to verify user information.
As the purpose of the Travel Rule is to transfer funds only to places where information can be confirmed, personal wallets, which are difficult to verify user information, have been an obstacle for banks and exchanges that are about to introduce Travel Rule. This is the background for Nonghyup Bank to take tough measures to completely block withdrawals from personal wallets.
As a result, Bithumb users using the ‘DeFi (Decentralized Finance)’ service faced a barrier. To use the DeFi service, you must link your personal wallet to the service. Therefore, it is common to send virtual assets from exchanges such as Bithumb to personal wallets and then link them to DeFi services.
Rep. Kim Nam-guk was a DeFi user using this method and a Bithumb customer. He also tried to send Wemix from Bithumb to Klip, his personal wallet, in order to deposit Wemix on DeFi services ‘Cleva’ and ‘ClaySwap’, but the transfer was blocked due to Nonghyup Bank’s action.
In the end, he took the ‘detour route’ to send Wemix from Bithumb to Upbit, and then from Upbit to Klip, and then took the Upbit abnormal transaction detection system ( FDS) .) was caught. This is because a large amount of transactions were made in less than 12 hours.
Upbit’s position is that it cannot disclose anything related to the abnormal transaction report, but as the abnormal transaction was reported to the Financial Intelligence Unit ( FIU ) and passed to the prosecution, Congressman Kim’s so-called ‘Coin Gate’ exploded.
Bithumb has resumed support for personal wallet withdrawals since the introduction of Travel Rule on March 25 last year. Currently, if you go through PASS authentication and register your personal wallet address in advance, you can send virtual assets from Bithumb Exchange to your personal wallet.