South Korean Lawmakers Reveal Their Wallets Are Full of ‘Crypto Dust’ Amid Scandals

South Korean lawmakers are claiming their crypto wallets now hold little more than “crypto dust” as they distance themselves from digital assets in response to recent political scandals. Many have sold their crypto holdings following public scrutiny and legal requirements mandating asset declarations, including cryptocurrencies.

This follows the Coin Gate affair, in which former lawmaker Kim Nam-guk was accused of using insider information to trade cryptocurrencies, sparking further allegations of insider trading within political circles. In the lead-up to parliamentary elections, concerns about token ownership prompted a wave of liquidation among lawmakers.

Crypto “dust” refers to tiny, often untradable quantities of cryptocurrencies that accumulate in wallets after the majority of assets are sold. These amounts are typically too small to be traded under crypto exchange limits.

Out of 300 elected National Assembly officials, only 36 declared any crypto holdings prior to the April 2024 elections, with the total crypto assets comprising just 0.01% of their overall wealth. Lawmakers like Chun Ha-ram of the New Reform Party and Kim Jun-hyeok of the Democratic Party reported liquidating nearly all their holdings, leaving behind only negligible amounts.

The fallout from these scandals has led many lawmakers to avoid crypto altogether, selling off assets as soon as they are declared to avoid further public scrutiny. Meanwhile, Kim Nam-guk is facing trial over allegations that he used cryptocurrency to hide nearly $7.5 million in wealth.