- Bithumb CEO Lee Jae-won has been named a bribery suspect over allegations that he accepted a hiring request from lawmaker Kim Byung-ki for the lawmaker’s son.
- South Korean police are investigating whether the hiring was connected to Kim’s legislative activities, including actions involving Bithumb competitor Dunamu.
- Authorities are also examining claims that another individual linked to Kim’s office received employment at Bithumb, while police continue reviewing evidence seized from the exchange.
- The investigation comes as Bithumb faces growing regulatory pressure, including a $24 million AML-related fine, a six-month partial business suspension order, and increased scrutiny from financial authorities.
Police Expand Investigation Into Alleged Hiring Favoritism at Bithumb
South Korean police have named Bithumb Chief Executive Officer Lee Jae-won as a suspect in a bribery investigation involving allegations that he accepted a hiring request from independent lawmaker Kim Byung-ki for the lawmaker’s second son.
According to Yonhap News, the Seoul Metropolitan Police Agency’s Public Crime Investigation Unit is investigating Lee on bribery-related charges. Authorities allege that Kim requested employment for his son during a meeting with Lee at a restaurant in Seoul’s Mapo district in November 2024.
Investigators obtained testimony from a former aide who previously raised concerns about Kim. Police believe the lawmaker’s son joined Bithumb approximately two months after the alleged request, leading authorities to examine whether the hiring was linked to Kim’s activities as a member of the National Assembly’s Political Affairs Committee.
Authorities Examine Possible Links to Legislative Activities
The investigation is also focused on whether Kim’s legislative actions may have benefited Bithumb. Police are reviewing claims that the lawmaker raised concerns about alleged monopoly issues involving Dunamu, the operator of Upbit and one of Bithumb’s main competitors, during the period in which his son was being considered for employment.
Authorities have not announced any findings and continue to assess whether a connection existed between those activities and the hiring decision.
In addition to the employment of Kim’s son, investigators are examining claims that the lawmaker requested a position at Bithumb for an aide identified only as A, who has reportedly worked at the exchange since September 2025.
Searches of Bithumb Headquarters Mark Latest Step in Case
The latest development follows a series of investigative actions by South Korean authorities. On June 8, police identified Lee as a bribery suspect while executing a second search warrant at Bithumb’s headquarters in Seoul’s Gangnam district and other related locations, marking a significant escalation in the probe.
Police are continuing to analyze materials seized during the searches and are expected to question A and other relevant individuals regarding the circumstances surrounding their employment and any knowledge of alleged job solicitation efforts. The investigation remains ongoing.
Bithumb Faces Intensifying Regulatory Scrutiny in South Korea
The latest bribery investigation involving Bithumb CEO Lee Jae-won comes amid a period of heightened regulatory pressure on South Korea’s cryptocurrency sector. In March, South Korean financial authorities imposed a fine of approximately $24 million on Bithumb and ordered a six-month partial suspension of certain business operations over alleged anti-money laundering (AML) compliance failures.
Around the same period, the exchange also received a preliminary sanctions notice that included proposed disciplinary measures against senior management, including its chief executive officer.
Regulatory attention on the digital asset market continued in April when the Bank of Korea proposed the introduction of a crypto market circuit breaker mechanism following a major market disruption linked to a Bithumb-related incident. The proposal was aimed at strengthening investor protection and improving market stability during periods of extreme volatility.
In May, South Korean authorities further advanced the country’s digital asset regulatory framework by confirming that the virtual asset tax regime will take effect in January 2027, marking a significant step in the government’s long-term oversight of the cryptocurrency industry.
