Overview
- Lee Jae-won, CEO of Bithumb, is under investigation by South Korean authorities for allegedly engaging in bribery related to hiring practices involving a lawmaker's family.
- The allegations involve National Assembly member Kim Byung-ki, who, while serving on a financial regulation committee, purportedly requested that Lee hire his son.
- Authorities have conducted two raids on Bithumb's headquarters in 2026 amid the ongoing corruption inquiry.
Authorities in South Korea have placed Bithumb CEO Lee Jae-won under suspicion of bribery for allegedly hiring a relative of a local politician.
As reported by local news outlets, the case revolves around Kim Byung-ki, an independent member of the National Assembly who was on the Political Affairs Committee that oversees financial regulations.
During a meeting at a restaurant in Seoul's Mapo district in November 2024, Kim is said to have asked Lee to hire his second son. The son began working at Bithumb in January 2025, remaining with the company for about six months, according to local reports. Investigators claim that Kim subsequently exploited his legislative influence to target Bithumb's competitor, Dunamu, during committee discussions.
Police in Seoul executed search warrants at Bithumb's headquarters on February 24 and again on June 8 as the investigation progressed.
This inquiry into bribery is just one aspect of a larger corruption investigation. Kim is currently facing 13 separate allegations, including charges related to nomination bribery, and has been summoned by authorities around seven times.
Bithumb's challenges extend beyond this hiring controversy. In March, South Korean financial regulators imposed a $24.5 million fine and ordered a six-month partial suspension of operations due to failures in anti-money laundering and customer verification practices. A court temporarily halted the suspension in late April following Bithumb's appeal against the ruling.
In the last day, Bithumb has recorded a trading volume of $441 million, according to CoinGecko. The exchange competes directly with Upbit, which is operated by Dunamu, for leadership in South Korea's digital asset market. This year, Bithumb has faced multiple regulatory challenges, including a court-ordered suspension that came after lawmakers criticized regulators for a significant Bitcoin display error that impacted numerous users, amounting to $43 billion.
The bribery allegations highlight an ongoing trend of corruption issues within South Korea's cryptocurrency industry, with a recent case involving a police officer who was sentenced to six years for accepting bribes related to crypto fraud investigations.