On the 17th, the seat of Representative Kim Nam-guk, who left the Democratic Party due to the virtual assets controversy, is vacant in the main conference hall of the National Assembly in Yeouido, Seoul. (Joint report) 2023.5.17
Although the controversy surrounding Congressman Kim Nam-guk’s coin transaction is growing, he was found to have made an average of 10 to 50 coin transactions per day during the first half of last year.
In particular, while attending the Remembrance Day ceremony on June 6 last year, he traded ‘DeFi (decentralized finance)’ virtual assets before and after the event.
Rep. Kim sold the entire amount of ‘Claystar’, a new coin suspected to be a ‘Lug Pool’ scam in the DeFi service. At the time, Claystar’s price was cut to 1/30 of its peak.
DeFi refers to a decentralized financial service that enables transactions such as the deposit and exchange of coins based on an automatic blockchain-based system (smart contract). It is different from trading services that have a ‘middleman’ like Upbit or Bithumb.
Unlike general virtual asset exchanges, the fact that it is not registered with the financial authorities is also a feature of the DeFi service. Congressman Kim used ‘ClaySwap’, a DeFi service based on Kakao’s ‘Klaytn’.
◇ On the day of memorial day, only 16 DeFi transactions
Transaction details of Kim Nam-guk’s ‘DeFi’ transaction before and after the Memorial Day ceremony on June 6 last year. Primarily using the ClaySwap DeFi service. Captured from Klaytnscope
As a result of analyzing the transaction details of the ‘Clip’ wallet owned by Congressman Kim on the 19th, he made a total of 16 DeFi transactions on June 6 last year. Klip is a virtual asset wallet service within KakaoTalk.
On this day, Representative Kim attended a memorial ceremony held at the memorial tower in Wongok Park in Ansan, district. The memorial service began at 10 am, when sirens sounded on Remembrance Day.
Although the transaction was not made during the memorial ceremony, Congressman Kim traded in Clay Swap until 8:48 am, immediately before attending the memorial ceremony, and resumed trading again at 11:21 pm, immediately after the memorial ceremony.
Rep. Kim mainly played the role of ‘liquidity provider (LP)’ in the clay exchange. DeFi services like ClaySwap are traded with an automated system (smart contract) of the blockchain. When an LP puts a specific virtual asset into a ‘liquidity pool’, a transaction is concluded in such a way that a person who wants to buy the virtual asset buys the virtual asset from the liquidity pool.
In this process, the PT will receive a portion of the transaction fee as compensation. Representative Kim has acquired a considerable amount of coins in the meantime with such ‘LP compensation’, and it was confirmed that he had made ‘LP transactions’ before and after the memorial ceremony.
◇ Claystar ‘new coin’, holds 1.6% of the ‘big hand’ issue volume … price is 30 pieces
Details of the transaction sent by Representative Kim Nam-guk and the sale of 5.6 billion Klaystars to Klayswap on June 6 last year. Representative Kim owned 1.12% of Klaystar’s total issued 500 billion.
What stands out in the transaction on this day is that Congressman Kim sold all his holdings of the new coin ‘KSTAR’. The number of Claystar tokens sold is a staggering 5.6 billion, accounting for about 1.12% of the total issued of 500 billion.
In general, it is very rare for a single investor to own more than 1% of the issued volume. In addition, considering that Claystar is a virtual asset whose trading volume was so insignificant that there was no price data at the time, it can be seen that one Congressman Kim’s ‘big hand’ was enough to move the price.
Above all, Claystar is currently a project suspected of being a ‘rug pulling’ scam. There is no announcement after April 2022 on the official Claystar blog and Twitter. The current price is ‘zero’, and it is a coin that can only be traded with a DeFi service because it is not even listed on general virtual asset exchanges.
It was a year ago when Congressman Kim sold it, but then he also suffered a loss and had to sell the entire amount. According to the details of the transaction, Congressman Kim collected a total of 5.6 billion Claystars between March 26, 2022 and June 6, 2022, until the ‘full sale’.
Claystar is a coin whose trading volume is negligible and past price data is impossible to find. However, judging by the transaction details of his purchase of 18.46 million Klaystars on March 26, 2022, with 15 Clay Swap tokens (KSP) (the price at the time was 123,000 won), the price per Claystar was approximately 0.0066 has been won.
He bought Claystar gradually from March to April 2022. At the time of full sale on June 6th, he owned 56 Claystars, but at that time, the price of Claystars dropped significantly to ’30 pieces’ or gained 0.00023 within three months to publish. He was a ‘big hand’ with 1.12% of the issuance, but the amount he got by selling the whole amount was only about 1.2 million won.
◇ Derumi diverted transfer to Upbit for ‘DeFi’… “DeFi addiction level”
On the other hand, industry insiders unanimously called a “DeFi addiction level” regarding the fact that Representative Kim made DeFi transactions during parliamentary activities and while attending constituency events.
A virtual asset industry official who asked to remain anonymous said, “If you look at the transaction history, it’s safe to say that all the ‘Jobcoin’ in Klaytn is included.” He seems to be interested in In fact, it’s at the level of addiction.”
It was ultimately due to DeFi that Congressman Kim’s transaction was detected as an ‘abnormal transaction’ on Upbit and reported to the Financial Intelligence Unit (FIU).
DeFi services, especially ClaySwap, which he actively used, are linked to his personal ‘Clip’ wallet. On January 31 last year, when Bitsum, the exchange he mainly used, blocked withdrawals to Klip and other personal wallets, Wemix indirectly sent to Klip through Upbit and it was detected as an abnormal transaction. It’s like an abnormal transaction when trying to do a DeFi transaction. With this abnormal transaction report, his suspicion of a huge coin was revealed to the world.
(Seoul = News 1)
