Bithumb CEO Under Bribery Investigation in South Korea Over Lawmaker’s Son Hiring
South Korean police are investigating Bithumb CEO Lee Jae-won over allegations of bribery connected to the hiring of individuals with ties to independent lawmaker Kim Byung-ki.
According to Yonhap News, the Seoul Metropolitan Police Agency’s Public Crime Investigation Unit is examining claims that Lee approved the hiring of Kim’s second son following a direct employment request from the lawmaker.
The investigation originated from statements made by a former aide to Kim, who had previously leveled other accusations against the lawmaker. This aide informed the police that Kim met with Lee at a Seoul restaurant in November 2024 and solicited the hiring of his son.
Investigators suspect the alleged hiring may be linked to Kim’s actions while serving on the National Assembly’s Political Affairs Committee. Authorities believe Kim may have focused his legislative efforts on criticizing alleged monopolistic practices by Dunamu, the operator of rival cryptocurrency exchange Upbit, in exchange for his son securing employment at Bithumb.
Earlier this month, police designated Lee as a bribery suspect during a second search warrant operation targeting Bithumb’s headquarters in Seoul’s Gangnam district and several associated locations. During an initial raid in February, investigators had already identified Kim as a suspect in connection with alleged preferential hiring practices related to his son’s recruitment, while Bithumb was listed as a witness.
Police are currently reviewing materials seized during these searches and are expected to question individuals involved in the hiring process to determine their awareness of any job solicitation efforts.
Beyond this hiring controversy, Bithumb has recently been involved in several other legal and compliance-related disputes. In May, a South Korean court issued a temporary injunction blocking a six-month partial business suspension imposed on the cryptocurrency exchange by the Financial Intelligence Unit (FIU).
The court’s decision has halted the sanctions pending a final ruling on Bithumb’s legal challenge against the financial regulator. The FIU had accused the exchange of approximately 6.65 million violations of financial regulations, including failures in customer identity verification and transaction monitoring. Regulators also imposed a fine of 36.8 billion won on Bithumb and issued warnings to several company officials.
In April, Bithumb initiated legal proceedings to freeze 7 Bitcoin that remained unaccounted for following a significant payout error during a promotional event. Due to a system input mistake, the exchange inadvertently distributed Bitcoin instead of Korean won to users. While most of the funds were quickly recovered, some recipients allegedly refused to return the remaining assets, prompting Bithumb to seek a provisional seizure.
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