Bithumb's CEO Investigated in South Korean Bribery Case

Bithumb CEO Investigated for Alleged Bribery

Lee Jae-won, the CEO of cryptocurrency exchange Bithumb, is currently under investigation by South Korean authorities for alleged bribery connected to hiring practices involving the family of a lawmaker.

The investigation centers on Kim Byung-ki, an independent member of the National Assembly, who reportedly requested that Lee hire his second son. This request was made during a meeting in November 2024, and the son subsequently joined Bithumb in January 2025, staying for approximately six months. Following this hiring, Kim is alleged to have used his position on the financial regulation committee to target Bithumb's competitor, Dunamu.

Authorities have carried out two raids on Bithumb's headquarters as part of the ongoing inquiry, with searches conducted on February 24 and June 8 of this year. This bribery investigation is part of a broader corruption probe into Kim, who is facing multiple allegations, including those related to bribery for nominations.

In addition to the bribery allegations, Bithumb has encountered significant regulatory scrutiny. Earlier this year, South Korean regulators imposed a fine of $24.5 million on the exchange and ordered a six-month partial suspension of its operations due to serious lapses in anti-money laundering and customer verification protocols. A court has since temporarily lifted this suspension after Bithumb appealed the decision.

As of now, Bithumb remains a significant player in South Korea's digital asset market, reporting a trading volume of $441 million recently. The exchange competes with Upbit, operated by Dunamu, amid ongoing regulatory challenges that have affected the entire cryptocurrency sector in the country, which has seen a rise in corruption issues.